An Update on European Economic Policy Uncertainty

Last fall, we noted the relationship between positive European equities market performance and a reduction in policy uncertainty:



So what does policy uncertainty look like in Europe's largest economies?






Overall, policy uncertainty has fallen from highs reached in 2011/2012.  As of now, this indicator would seem to bode well for European equity performance.  So far this year, gains have been modest for most of MSCI Europe with better performance in Denmark, Ireland, and Greece: