As expected, the Governing Council of the ECB kept interest rates unchanged on Thursday. In its statement, the ECB reiterated that most measures of underlying inflation were easing, wage growth was moderating, and firms were…
Thursday’s US Produce Price Index report for March shows headline PPI came in below expectations on both a month-over-month (0.2%) and annual (2.1%) basis. Meanwhile, PPI ex food and energy came in at 0.2% m/m (in line with…
In this insight, we calibrate our investment views based on the latest Bank of Canada decision.
According to BCA Research’s US Equity Strategy service, rising inflation benefits Utilities, Energy, and Materials, and is a headwind for the Consumer Discretionary sector. After a protracted bout of underperformance,…
Global material stocks have underperformed over the past 12 months, returning only 11.3% vs 21.4% for the overall market. But could they be a buy now? There are several arguments to argue that they will: The ISM has…
The Bank of Canada held its policy rate steady at 5% on Wednesday, in line with expectations. In his opening remarks following the announcement, Governor Tiff Macklem was cautiously dovish: “We don't want to leave…
Headline inflation came in at 0.4% on a MoM basis and 3.5% on an annual basis, beating expectations of 0.3% and 3.4% respectively. Meanwhile core inflation came in at 0.4% on a MoM basis and 3.8% on an annual basis, beating…
Our reaction to this morning’s CPI report and bond market moves.
Gold and bitcoin are conceptually joined at the hip because the value of both comes from their ‘non-confiscatability’ by inflation, by bank failure, and in the case of bitcoin, by state expropriation. The sharp recent rallies in both…
Investors typically associate high-flying tech stocks with high sensitivity to interest rates. The rationale is simple: Given that most of their cashflows are further into the future, their value will be more sensitive to changes…