China Sales Exposure – Euro Stoxx 50 vs. S&P 500 Europe equities are more sensitive than the U.S. market, as the exposure of the Euro Stoxx 50 index to China is about twice that of the S&P 500. Image: Goldman Sachs Global Investment Research
Percentage of Company Revenue from International Trade European companies are highly dependent on foreign markets for their revenues. A rebound in world trade may benefit them directly. Image: Charles Schwab
Demographics – Share of Population Aged 65 and Over While global population is aging, the population in Europe is aging rapidly. Image: Financial Times
The Rhythm of the Global Trading Day of Equities The desire to shorten market hours is gaining traction in Europe. Image: Financial Times
Euro Area Banks Relative Valuation The relative valuation of euro area banks is still below the levels of the financial crisis, due to falling interest rates and negative rates in Europe. Image: Bloomberg
Debt, Demographics and Labor Force Growth The slowdown in the labor force in the U.S., China, Europe and Japan, represents 62% of the world’s GDP and 69% of the equity market capitalization. The labor force growth is expected to be -1% by 2055. Image: Fidelity Investments
Correlation of VIX with U.S. 10-Year TIPS Yields The correlation of the VIX with U.S. 10-year TIPS yields has turned negative, as it was during the dot-com bubble burst, the Great Financial Crisis, the European debt crisis,… Image: Goldman Sachs Global Investment Research
Fears of Global Recession The latest BofAML’s European credit investor survey shows that fears of global recession have risen to 42%. Image: BofA Merrill Lynch
NFIB Survey Leads U.S. Employment The U.S. economy is not unaffected by the trade war and global slowdown. This chart suggests that U.S. employment is slowing down. The chart also suggests that the NFIB survey leads U.S. employment by 6 months. Image: Rothschild & Co Asset Management Europe
U.S. Share of Global Investment-Grade Fixed-Income Yield With negative yields in Europe and Japan, the U.S. now accounts for 95% of the positive investment-grade yield. Image: Legg Mason
Dividend Yield vs. Corporate Bond Yield This chart shows that dividend yields of European companies appear more attractive than corporate bond yields. Image: Goldman Sachs Global Investment Research