sentix Survey Essentials (English)

Macro expectations bearish for Bunds; supporting EZ/US equity bias

The sentix survey underlines the continued relationship between macro developments and markets. In the case of the Eurozone (EZ), the sentix Economic Expectations Index is running at its highest level since December 2015, rising from +10.8 to +14.0 in November. At a market level, economics are seen as an increasingly bearish theme for Bunds, which chimes with investors’ still notably negative medium-term strategic bias on bonds. However, macro views also appear to be at work in equities, with relative economic expectations consistent with the more positive medium-term strategic bias of survey participants on Eurozone equities versus the US that has recently emerged. Macro expectations continue to play an important role in setting market opinions. See Page 2 for charts.