economy europe germany hong kong Markets stocks

Who Needs An Economy When You’ve Got Stocks? Markets On Fire In Two Recession-Hit Locales

Two recession-ravaged economies are enjoying large rallies in domestic equities.

Forget the burgeoning recession, German stocks are on fire. Thanks to optimism around trade and the concurrent pro-risk rotation across assets, the DAX is now the most overbought since May. Trade-sensitive German shares are on track for a fifth consecutive weekly gain and are within shouting distance of the record high hit in January 2018. Not surprisingly, carmakers have led gains. Daimler, Volkswagen and BMW have rallied sharply in November on the heels of big gains last month. That contrasts with big losses logged in August and May, when trade tensions were front and center after Trump broke the Osaka and Buenos Aires truces. Notably, the DAX is outperforming the Stoxx 600 in 2019. German equities are gunning for a 25% gain for the year. That would be the best performance since 2013. This, even as the world's fourth-largest economy is almost surely in recession. The manufacturing PMI bounced a bit in the final print for October, but it's still a disaster. As noted on Monday, readers should do themselves a favor and not be tempted to join the chorus of armchair economists peddling the patently ridiculous notion that Germany should just sit on its hands in order to sa
Subscribe or log in to read the rest of this content.

2 comments on “Who Needs An Economy When You’ve Got Stocks? Markets On Fire In Two Recession-Hit Locales

  1. babeinwoods says:

    your title made me laugh. it’s insane, like everything else these days. just how high can this pyramid scheme go?

  2. Ria says:

    The markets seem to be anticipating that what we have seen is a mid-cycle correction. It appears to me that we are in a gradual slowdown emmanating out of the manufacturing sector. Where it stops nobody knows.

Leave a Reply to Ria Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.