Fed Holds Fate Of European Stocks In Its Hands

Global excess liquidity is falling in the US, and now in Europe as well, leaving equities in the region more vulnerable to declines unless the Federal Reserve pivots back to a more accommodative stance.

Excess liquidity, the difference between real money growth and economic growth for the G10, has started to fall for the first time in two years.

Authored by Tyler Durden via ZeroHedge January 23rd 2025