The ongoing profit contraction among Chinese industrial firms underscores that deflationary headwinds dominate the domestic economy. Although the annual pace of decline of industrial profits slowed from 8.3% y/y in June to 6.7% y…
Eurozone money supply data reflect the impact of the ECB’s aggressive tightening campaign on the region’s economy. Data released on Monday showed the July M3 measure of broad money (the sum of M2, repurchase…
According to BCA Research’s European Investment Strategy service, the profit outlook for Eurozone earnings continues to deteriorate. The team’s earnings model for Eurozone equities continues to point to a deepening…
Germany’s IFO survey sent a downbeat message on Friday. The headline Business Climate Index fell by 1.7 points to 85.7, below expectations of 86.8 and near the 85.2 level at which it bottomed in October. A 2.4-point…
The final release of the University of Michigan’s gauge of US consumer inflation expectations unexpectedly rose in August. It shows 1-year ahead inflation expectations increased by a tenth of a percentage point to 3.5% (an…
The Treasury market’s reaction to Fed Chair Jermone Powell’s Jackson Hole speech was relatively tame on Friday. Although there was some volatility during the speech, the 10-year yield ended the day broadly unchanged.…
Since July, the DXY index is up 4.5% from the lows. On a broader trade-weighted basis, the Federal Reserve’s measure of the nominal dollar is up 2.9%. The usual suspects for dollar strength have been weakness in global…
According to BCA Research’s Emerging Markets Strategy service, even though mainstream EM equities are cheap, their cyclical and structural growth prospects are poor. Equities of mainstream EM economies (excluding…
US durable goods orders delivered a negative surprise on Thursday. The 5.2% m/m decline in new orders for manufactured durable goods came in below expectations of a 4.0% m/m decrease and marks the biggest monthly drop since April…