Shareholder return and remuneration are higher in the US than in the Eurozone – Natixis

FXStreet Insights Team FXStreet

Comparing the United States and the Eurozone, analysts at Natixis see that both the shareholder return and shareholder remuneration as a percentage of GDP are markedly higher in the US than in the Eurozone.

How do the US and the eurozone compare?

“As regards the shareholder return, it is 2.5% higher in the US than in the Eurozone.”

“As regards shareholder remuneration (as a percentage of GDP), we have seen that it corresponds to 8% of GDP in the US versus 4% in the Eurozone.”

“As regards the proportion of gross earnings that is distributed and earnings as a percentage of corporate investment, we see that they are about twice as high in the US than in the Eurozone.”

“All things considered, US companies pay their shareholders significantly more than European companies do, the risk being that shareholders receive amounts that should be invested.”

Author

FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

EUR/USD looks to regain the 200-day SMA

EUR/USD regains some balance and trade just above 1.1600 the figure ahead of the opening bell in Asia. The pair initially dipped to the 1.1530 zone for the first time since November, always following the stronger US Dollar and the marked flight-to-safety in the context of the ongoing Middle East crisis

GBP/USD attacks 1.3300, refreshing three-month lows

GBP/USD is deep in the red near 1.3300, accelerating its downside to renew three-month lows in European trading on Tuesday. The ongoing escalation in the Iran war, combined with rising Oil prices, weighs negatively on the higher-yielding Pound Sterling as the US Dollar capitalizes on increased haven demand.

Gold bounces off lows, back above $5,100

Gold remains on the defensive, eroding part of the recent multi-day advance and managing to trade back above the $5,100 mark per troy ounce on Tuesday. The precious metal initially dropped just below the critical $5,000 threshold on the back of the persistent strength of the Greenback, higher US Treasury yields across the curve and investors' repricing of Fed rate cuts.