Investors should underweight global equities and risk assets; overweight US stocks relative to global; and overweight defensive sectors versus cyclicals.
Tokyo’s headline CPI inflation fell below expectations in August, easing from 3.2% y/y to 2.9% y/y – slightly below anticipations of 3.0% y/y and the first dip below 3% in nearly one year. Similarly, the slowdown in…
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…
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…
In this report, we review our FX trade recommendations with suggestions on how to position for the next few months.
Earlier this week, EUR/JPY closed at a fresh 15-year high, bringing its year-to-date gain to 14%, before losing some ground over the subsequent two days. To the extent that the recent increase in global bond yields continues to…
Deflation prevails in China’s economy. Marginal interest rate cuts will be insufficient to boost growth as the economy is experiencing debt deflation and might be entering a liquidity trap. There will likely be more economic…
Chinese authorities have recently ratcheted up support for the currency. The PBoC continues to set its daily yuan fixing at a stronger-than-expected rate, with the yuan midpoint (a reference for trading that caps the range…