Another green shoot? Europe's recession may have bottomed

Here's another possible 'green shoot' for investors: Europe's recession may have bottomed.

Gross domestic product in the 16-nation euro-zone contracted by 2.5 pecrent in Q1 compared to Q4 2008, mainly due to falling exports and investment, according to data compiled by Eurostat, the E.U.'s statistics office (pdf).

Further, the euro-zone contraction is now four quarters long and represents the long and biggest contraction since European-level record keeping started in 1995. However, at least one economist, Alexander Koch of UniCredit Bank, senses a bottom is forming on the European continent.

"The latest ugly GDP figures should, however, mark the trough of the current 'Great Recession'," Koch told Reuters. In addition, recent European business surveys suggest new order declines have stabilized, and when combined with large declines in inventories, that could set the stage for a second-half rebound.