Eurozone - Rotten to the Core
by Murray Gunn
Updated: April 02, 2019
This week's Eurozone economic data will worry the ECB even more.
Manufacturing Purchasing Managers indices in the Eurozone came in lower than expected for March, pointing to continued weakness in the economy. Furthermore, Eurozone consumer prices are rising at an ever slower rate. Momentum has been waning for two decades.
This week's Eurozone inflation data for March was lower than expected with the core rate (excluding food and energy) coming in at 0.8% year-on-year. The core rate is the European Central Bank's (ECB) preferred measurement and so this latest downturn will worry it, especially given that the ECB declared victory over deflation last year. The chart below shows that Eurozone core inflation has been in a disinflationary trend (meaning that prices are rising at an ever slower rate) since 2002. Clearly, there is an entrenched mood in the minds of Eurozone economic participants which is suppressing consumer prices.
Of course, this has coincided with a 19-year (and counting) bear market in the EuroSTOXX stock market index. Our analysis maintains that the Eurozone bear market is not yet over. It doesn't have to follow the stock market, but we would not be surprised to see the Eurozone consumer price index start to register declines in the future.
Let Elliott waves show you how market psychology is shaping trends in 40+ top global markets -- today.
Global Market Perspective is one of our oldest publications. Every month since 1992, subscribers rely on the new chart-packed issue to clearly spell out new risks and opportunities for them.
Every major stock index on Earth. Every key bond market. Every major currency, metal, or energy market. Every big economy.
Join in -- risk-free for 30 days -- and become THAT global investor who always seems a step ahead of the market. (Well, 40+ of them.)
Here’s how Global Market Perspective helps you see and take advantage of the world’s best opportunities -- starting right now
GMP is your window into EWI’s most important insights -- the patterns of human psychology that drive the markets. You get a quick-hitting, chart-led overview of every major stock index, interest rate, currency, metal, energy market and economy. ALL the world’s major markets, ALL in one issue.
You get a 360-degree perspective you cannot glean from any other publication -- and a powerful advantage over your peers. And with instant access to the current issue, plus the previous two issues, you'll get up to speed--fast.
Our 25+ wave analysts deliver their monthly forecasts to you. They are experts in Elliott wave analysis, a method our subscribers know is unequalled in its objectivity. The Elliott wave principle enables GMP to call for rapid accelerations and sudden price reversals that no other method can foresee.
GMP keeps you ahead of 40+ markets*, including:
U.S. - DJIA, S&P 500, NASDAQ
Europe - DAX, FTSE 100 & 250, CAC 40, AEX, SMI, IBEX 35, S&P/MIB, Dow Jones Euro Stoxx 50, RTS and CECE Overall Traded Index
Asia-Pacific - Nikkei 225, Shanghai Composite, SENSEX, Hang Seng, All Ordinaries, Strait Times Index, KOSPI and TAIEX
EURUSD, GBPUSD, USDCHF, USDJPY, AUDUSD, USDCAD, USDMXN, USDRUB, USDBRL, USDZAR, EURJPY, EURCAD, EURGBP, GBPJPY, NZDUSD and AUDJPY
U.S. Treasuries, Bund, Bobl, Long Gilt, Euribor, Short Sterling, 10-year Australian Bonds, 10-year JGBs
PLUS Gold, Silver, Crude, Natural Gas, and more
(* Markets may vary depending on market movement)
Global Market Perspective
Gives you clear and actionable analysis and forecasts for the world’s major financial markets.
Get insights for the U.S., European and Asian-Pacific main stock indexes, precious metals, forex pairs, cryptos (including Bitcoin), global interest rates, energy markets, cultural trends and more.
Germany's DAX Reclaims Bull Territory: Will the Comeback Story Continue?
Wirecard's Collapse: If Scandal Was the Cause, It Should've Come Down Long Ago
Boris Johnson Resigns?
Markets Say, "Yawn"
Global Investment Strategists Prefer This Region – Should You Follow?
No datasource selected or available.
Join Club EWI — Free
Unlock tons of free reports, videos, forecasts and more – designed for investors like you.
Analysis for Investors & Traders
Services for Professionals