Recession-Hard/Soft Landing
Investors have become increasingly more optimistic about the economic outlook. BoA’s Global Fund Manager Survey shows the share of investors surveyed expecting the global economy to experience a soft landing over the next 12 months rose to 68% in July. That…
According to BCA Research’s Geopolitical Strategy and European Investment Strategy services, Spain’s economy is outperforming that of the Eurozone thanks to lower inflation and exploding tourism activity. These trends will not be affected by the results of…
Citigroup’s global economic surprise index has fallen sharply over the past few months and is now slightly negative – indicating that economic data have surprised to the downside. Yet beneath the surface, there is a dichotomy across major global economies.…
US speculative-grade corporate bond (junk) spreads rose significantly last year in response to a sharp increase in US interest rates and widespread concerns about a US recession. Junk spreads have since come in from their mid-2022 peak, and now trade below…
BCA Research’s Emerging Markets Strategy service concludes that the failure of EM stocks, Asian currencies and commodities to stage a broad-based outperformance is consistent with their macro thesis that global trade/manufacturing – the main driver of EM –…
Canada’s CPI release showed headline CPI inflation cooled from 3.4% y/y to 2.8% in June – below estimates calling for a less pronounced moderation to 3.0% y/y. This marks inflation’s first return to the Bank of Canada’s 1%-3% percent inflation target range…
Results of the NAHB survey shows US homebuilder sentiment inched further above 50 to a 13-month high of 56 in July. Its ongoing rise above 50 indicates that net sentiment is becoming increasingly favorable. That said, homebuilders pared back some optimism…
On the surface, the latest batch of Chinese economic data released on Monday shows a deterioration in consumer spending with retail sales growth slowing sharply from 12.7% y/y to 3.1% y/y in June – slightly below consensus estimates of 3.3% y/y. In addition,…
Singapore’s trade data continue to send a pessimistic signal about global manufacturing conditions. The year-over-year contraction in non-oil domestic exports (NODX) deepened to -15.5% y/y in June from -14.8% y/y – marking the ninth consecutive month of…
In the first five months of the year, optimism about GAI (generative AI) drove a narrow rally in US equities. The three sectors that contain companies that are most exposed to this dynamic were the only ones that experienced price gains. IT, Communication…