Economy
The December Sentix Economic Index sent a positive signal about investor morale. The overall index for the Eurozone jumped from -30.9 to -21 – beating expectations of a more muted improvement to -27.5. Both the current situation and expectations components of…
BCA Research’s China Investment Strategy service expects the country’s green and tech infrastructure investment to continue to boom in 2023 and beyond. China’s tech infrastructure investment skyrocketed by nearly 40% year-on-year in the past six months,…
Investors should maintain a conservative and defensive strategy until recession risks are clearly reduced.
China’s infrastructure investment growth rate will likely slow from its current nominal 14% to 4-6% in 2023H1, on a year-over-year basis. Funding constraints and a shrinking pool of good projects will cap the upside in China’s overall infrastructure fixed-asset investment (FAI) in the next six months.
Canada’s exports and imports grew by 1.5% m/m and 0.6% m/m respectively in October, causing the trade surplus to widen to a larger-than-expected CAD 1.21 bn from a downwardly revised CAD 607 mn in September. Nearly three quarters of Canada’s exports go to…
As expected, the Reserve Bank of Australia lifted the Cash Rate by 25bps to a 10-year high of 3.1% on Tuesday – the third consecutive quarter-point increase after it unexpectedly slowed the pace of hikes in October. Governor Philip Lowe’s post-meeting…
Chinese investable stocks and the Asian currencies index posted the largest positive post-GFC abnormal returns among major financial market assets in November. Investor optimism about a potential relaxation of pandemic measures in China, as well as hopes for…
The ISM Services PMI surprised to the upside, unexpectedly expanding at a faster pace in November. The headline index rose by 2.1 ppts to 56.5, led by the business activity and import sub-indices which rose by 9.0 and 9.1 ppts to 64.7 and 59.5, respectively.…
Labor market strength and consumers’ evident willingness to dip into their pandemic savings keep our optimistic consumer thesis intact. We remain tactically overweight equities.
European inflation will decline through 2023, which will greatly help households and consumption. But can European inflation remain low after that?