Europe has failed to create the right conditions for investors over the past year, but some say they expect quite pleasant surprises.
Goldman Sachs shares the fact that the better data from the eurozone outlines the slowdown in the economy. This scenario is also shared by Morgan Stanley analysts, who point to Europe's dependence on the Chinese economy, which shows signs of reversal.
" There are warning signs that the worst is behind us. The new data surprisingly surpass expectations, which is in sharp contrast to the past year, "says Goldman Sachs economist Jari Stehn.
From the chart provided by Citigroup (Surprise Index), the five-month peak is clearly visible. Whether this scenario will continue will be seen on Friday when the Purchasing Managers Index for March comes out.
Goldman's economic growth forecast for the eurozone is 1.4% for the second half of the year after stabilization around 1%, although the indicators do not show strong impulse specialists rely on QE, wage growth and lower oil prices to stimulate growth in the EU.
Source: Bloomberg Finance L.P.
Graphs: Used with permission of Bloomberg Finance L.P.
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