Gavekal Capital: Economic Surprises Have Rebounded In China, Declined In Developed Markets

Monday, July 28, 2014

Economic Surprises Have Rebounded In China, Declined In Developed Markets

The Citi Economic Surprise Index has reached it's highest level since February and has increased sharply since mid-May. On May 13th the surprise index fell to it's lowest level since late 2008. However, since then it has been on a sharp trajectory upwards and has rebounded from -135 to +31.

Meanwhile, in the Developed Markets economic surprises are surprising on the downside. The US index has been in negative territory since June.The Developed Markets index is also breaking down and is at a 13-month low. Finally, the Eurozone is helping the US drive the Developed Markets index lower.

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