Article / 08 June 2016 at 10:32 GMT

Daily Shot: Eurozone economy improves but Brexit fears intensifies Team / Saxo Bank
  • Eurozone GDP revised higher as spending increases
  • German 5-year benchmark turns more negative
  • Swiss 30-yr government bond hits record low
  • German industrial output beats forecasts
  • UK Economic Policy Uncertainty Index  spikes on Brexit fears
  • BPVIX spikes as Brexit and Bremain run neck and neck

By Walter Kurtz*

Once again, let's begin with several developments in the Eurozone.

1. Eurozone GDP was revised upwards amid improved household spending. Will this be the year the euro area's economy grows faster than the US? 

2. German's 5-year government bond yield moves deeper into negative territory, and the 10-yr yield hit a record low (is it headed into the red as well?).

3. German industrial production beat forecasts amid a jump in investments.

Elsewhere in Europe, the Swiss 30-year government bond yield dropped to a new low of 12 basis points. Is it going negative as well?


1. Turning to the UK, the nation's Economic Policy Uncertainty Index (3-month moving average shown) spikes on Brexit fears.


2. Is Brexit risk driving outflows from European funds held by US investors?


3. Some polls seem to show the EU Referendum "Leave" campaign ahead.


4. Here is the Economist's Brexit poll average.


5. The British pound implied volatility index rises further on Brexit concerns.


— Edited by Clare MacCarthy
* Walter Kurtz is an alias
** This is an abridged version of the Daily Shot. To subscribe to the full version, link to the Daily Shot here. E-mail addresses are never shared with anyone.


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