European stocks face mounting pressure from economic data

Equities in Europe may not be able to dismiss disappointing economic data much longer unless the relationship between the two completely breaks down. While the Stoxx Europe 600 Index is up about 4 percent from this year’s low on March 26, Citigroup’s euro-zone economic surprise index has continued to slump, falling to its lowest since 2012. Despite the outlook for euro-area economic and earnings growth remaining positive, its period of peak acceleration seems to have passed.