Stocks started the week poorly but found excuses to rally midweek, just not enough to get all the way up to breakeven since last Friday. Global economic data continued to look mostly soggy, though not across the board. There was a lot of US data this week, but also important releases from China, Japan, and the Eurozone that we discuss in detail. We also take a look at recent earnings in Europe which have exceeded expectations modestly.
One piece of positive economic data we focus on in the week’s report is the ratio of Leading to Coincident indicators published each month by the Conference Board. As shown below, the ratio is rising again after bottoming out in January. While not at a new high, its behavior is looking distinctly different from the typical pre-recession backdrop. Ahead of recessions, the ratio plunges very consistently, a marked difference to the current sideways range. We discuss further in the report.
(Click on image to enlarge)
Comments
Log in or sign up to join the conversation.