A Story Of Two Regions - Europe Is Sick While Asia Is Feeling Frisky

European equities are definitely the sick man of the global equity markets. Momentum in European stocks has significantly diverged from the rest of the developed world and is at its weakest level in over a year. A rebound in momentum in Asia-Pacific over the past few months has helped offset the weakness in Europe in the MSCI World Index. In the charts below, we are looking at the percent of stocks that are trading above their 65-day, 100-day, 200-day moving averages. We first show the percent of issues above various moving averages for MSCI Europe and MSCI Asia-Pacific to illustrate how the two regions have been diverging. The last two charts looks at the percent of stocks where the 50-day moving average is above the 200-day moving average. This is an effective way of measuring breadth of momentum in a certain region.