According to data from Moody's Analytics the GDP of European countries are taking a hit due to rising oil prices. A $10 increase in the price of a barrel of oil subtracts 0.28 percentage points or 28 basis points from the German GDP one year later.
Ireland and Italy take a hit that is twice as bad as Germany's and Greece is hit the hardest with a drop in 0.8 percentage points for every $10 rise in a barrel of oil.
Many skeptics will ignore the fact that rising oil prices hurt an economy - the truth is in the numbers. Unfortunately I feel oil will remain high and with anemic growth at best for the Euro Zone countries, it could be a major issue going forward.
ETFs to Watch: Italy ($EWI), Germany ($EWG), Greece ($GREK), Ireland ($EIRL)
Market expert and TV personality Matt McCall blogs about what is really moving the markets. He will emphasize Exchange-Traded Funds (ETFs) and individual stocks throughout the trading day.
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