Gavekal Capital: Checking In With The Citi Surprise Index - US Improving, Eurozone Deteriorating, China Still In The Basement

Friday, May 30, 2014

Checking In With The Citi Surprise Index - US Improving, Eurozone Deteriorating, China Still In The Basement

Economic data has generally been improving in the 2nd quarter according to the Citi Economic Surprise Index. There are, however, some notable exceptions.

The United States briefly broke above the zero line earlier this week before falling back a few points.

This has helped the Developed Market series to rebound to the highest levels in about three months.

However, the Eurozone and Asia-Pacific regions are still exhibiting weakness. In fact the Eurozone has been a steady decline since the end of January

The Emerging Markets are still stuck in negative territory (albeit with small bounce) while Latin America and CEEMEA (Central Europe, Eastern Europe, Middle East & Africa) have enjoyed an improving economic environment in 2014 in contrast to 2013.

China is certainly holding the Emerging Market index down. There has been some improvement but overall the Chinese economic statistics are still vastly underwhelming.

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
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