Developed Countries
The ZEW Survey of German investor sentiment unexpectedly deteriorated in April. The sentiment index fell 8.9 points to 4.1, disappointing consensus estimates of an uptick to 15.6 and recording its second consecutive monthly decline. This move reveals that…
Typically, emerging market equities outperform when the US dollar is soft. But that has not been the case in the past month. Although the broad trade weighted US dollar has relapsed, EM stocks have continued underperforming their developed market peers. Will…
BCA Research’s US Bond Strategy service concludes that in the near-term (3-months), investors should favor bond sectors with low exposure to both rate risk and credit risk such as T-bills and agency bonds. One of the traditional relationships that fixed…
The New York Fed’s Empire State Survey delivered a positive signal about US manufacturing activity in April. The headline general business conditions index jumped 35.4 points to 10.8, unexpectedly crossing into positive territory for the first time since…
The top diplomats of the G7 countries – US, Japan, UK, Canada, Germany, France, Italy – plus the European Union are meeting in Karuizawa, Japan on April 16-18. The summits are going forward despite Japan’s recent domestic security concerns stemming from a…
The reason why the EU will try to balance economic ties with China along with defense ties with the US for as long as possible is not strictly economic. Europe and the US are much more reliant on China than Taiwan for trade, but that has not prevented the US…
Our US Bond Strategists expect the Fed to deliver one last 25 basis point rate hike at its next FOMC meeting on May 2-3 before an extended pause. Given that rate cuts are currently priced in for 2023, the implication for US bond investors is that they should…
BCA Research’s US Equity Strategy service upgraded Growth to overweight and downgrade Value to underweight on a tactical investment horizon. Many growth stocks have recently disappointed investors as their sales and earnings growth is slowing. Yet,…
This report looks at the relationship between rate risk and credit risk and how it has changed over time. It also makes the case for favoring agency MBS within an underweight allocation to US spread product.
We Introduce our new macro models for the Eurozone’s equity earnings, which include sectoral forecasts. Find out what they predict for the next six-to-nine months.