Europe looks to have stolen Japan's mojo
Australian Ethical observes indicators that track the production and movement of goods and services through an economy’s supply chain to gauge current trading conditions. Each month they update their proprietary model for the latest figures. We see some softness in recent US data, but conclude it is manageable. Europe put in a bottom and looks to be on an upturn. The timing of Chinese New Year impacted China’s data making an assessment this month inconclusive. That said, we note the government is rolling out targeted stimulus again. Japan is decelerating unexpectedly. In Australia, we observe heavy apartment construction and low gasoline prices have blunted the slowdown in the resource sector so far but continue to question whether it will be enough. (VIEW LINK)
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