Comments from a Goldman Sachs research piece:
GS strategists see Europe as in the "sweet spot" in terms of growth
- Financial conditions have eased sharply
- Data keeps beating expectations
- Estimates of current growth in the eurozone remain stable
On the other hands, says GS ...US growth is under pressure
- tighter financial conditions
- US data disappoints
- US growth estimates continue to slow sharply
- "More generally, on the European side of the equation, the trifecta of accommodative policy, positive data surprises and an uptick in growth has led to the ongoing outperformance of equity markets there, with Germany - perhaps uniquely positioned to benefit from currency and oil relief, and where the economic impulse higher has been the strongest - in the vanguard of the rally
- Gains in other European markets are more a function of the EUR weakness and, hence, likely also a reflection of mostly policy impacts and less so growth improvements"
