Deutsche Warns Global Economy About To Roll Over, Says “Sell”

Thursday, January 26, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Jan 26, 2017

When Trump unexpectedly won the election, and futures staged one of their most dramatic rebounds in history, surging from limit down to solidly in the green, Wall Street promptly goalseeked their economic assumptions “chasing the price”, quickly going from bearish to bullish, and nobody did it faster or more conclusively than Deutsche Bank, which seemingly overnight flipped from one of the biggest bearers of gloom on the outlook for the US economy, to one of its biggest cheerleaders.

That however changed overnight, when DB’s European equity strategist Sebastian Raedler highlighted that, according to the latest flash PMIs, global growth momentum hit a six-year high in January.

And with global macro surprises close to their all-time high – much of which has been predicated on the relentless debt-creation by China which just got instruction to slow down dramatically in the current quarter – the DB strategist says they are likely to roll over from current elevated levels, resulting in a slowdown in global growth in the coming months.

From his full set of observations, first here are the good news:

Global growth momentum hits a six-year high: in mid-January, our indicator of global macro surprises rose to 45, the highest level since May 2010. This points to a further rise in global manufacturing PMI new orders from the December level of 53.7, implying they are now at a six-year high and consistent with 2017 global GDP growth of 3.5% at market FX terms (a sharp acceleration from the 2.6% realized growth over the past four quarters).

The Rest…HERE

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