Economy
As expected, the Bank of Canada kept its target for the overnight rate unchanged at 5% for the second meeting in a row on Wednesday. The Bank cited clear evidence of the impact of elevated interest rates on demand — especially in durable and semi-durable…
The Atlanta Fed's Home Ownership Affordability Monitor (HOAM) – which gauges a median-income households' ability to absorb annual costs related to owning a median-priced home – dropped to a fresh record low in August. At 67.3, the index is significantly below…
The price of gold has rallied by 9.2% since October 5, reaching a 5-month high by Wednesday's close. Notably, this latest rally comes despite real bond yields having been trending higher for the past two weeks. Given that higher bond yields typically weigh…
According to BCA Research's China Investment Strategy service, the property market has not cleared. Property market indicators suggest that China's real estate sector is still struggling to stabilize. Home sales and starts have entered their third year of…
This week’s report contains an update on the Treasury curve’s recent bear-steepening trend and a look at different measures of long-maturity Treasury valuation.
China’s economic growth will stagnate, at best, rather than revive. Lower valuations of Chinese equities are justified, and share prices have more downside. The RMB will continue to depreciate versus the US dollar.
The flash PMI estimates from S&P Global delivered a mixed message about economic conditions across DM economies in October. The Eurozone composite index unexpectedly fell from 47.2 to a nearly three-year low of 46.5 on the back of surprise declines in…
So far, 2023 is proving to be a year of two phases for global equity markets. Despite the bout of bank turmoil which weighed on equities in Q1, stocks rallied for the most part of the first seven months of the year. This rally has since morphed into a general…
Results of the ECB's Q3 Bank Lending Survey indicate that the impact of tight monetary policy is weighing down on lending conditions and loan demand in the Euro Area. In terms of credit standards, the survey results reveal that the broad-based tightening…
The 10-year US Treasury yield briefly moved above 5% earlier this week before dipping back down. While we can’t rule out another jump back above 5% in the coming weeks, the recent bond selloff has created a good deal of long-run value in US Treasuries. In…