Search Results for: euro area

Eurozone Inflation and Brent Oil Prices This interesting chart shows the direct effect of brent oil prices (YoY % change) on euro area inflation. Image: Jeroen Blokland

Could European Stocks Outperform U.S. Stocks? This chart shows U.S. vs. European stocks at 70-year highs. Keep in mind that investors think that the euro area economy is less resilient than the U.S. economy in the event of a shock. Currently, the euro area economy is more impacted by the global slowdown than the U.S.…

Why Do Eurozone Bond Investors Accept Zero Long-Term Interest Rates? Because they have a deflationary view of the euro area economy. Now, investors are losing so much money just by holding German bonds in real terms (adjusted for inflation). Today, the Germany 10-Year bond yield hits 0% again. Keep in mind that raising interest rates in…

Inflation Surprise – Economic Surprise The risk of stagflation in the euro area is increasing significantly. Image: Gavekal, Macrobond

% GDP Loss from Peak to Trough – Coronavirus Crisis vs. Global Financial Crisis The peak-to-trough decline in the United States. and Euro Area, is likely to be more than double that of the global financial crisis. Image: Deutsche Bank Research