Developed Countries
Italy and Spain have a poor reputation when it comes to their economies. The European debt crisis affected them more than other Euro Area countries. Their housing markets collapsed and debt cost soared. France and Germany, while also affected, were the bright…
Increased Share of S&P 500 Companies Issuing Negative Q1 Guidance
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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 in their discounter. And…
Fears of a hard landing are abating as growth has been surprising to the upside. New worries are emerging, such as the trajectory of disinflation, and the pace and timing of rate cuts. In this environment, it is important to build a resilient all-weather portfolio, which protects against a correction, rising rates, or stubborn inflation but also has exposure to the AI theme.
German industrial production growth accelerated from an upwardly revised 1.3% m/m to 2.1% m/m in February, registering the fastest pace in 13 months and largely beating expectations of a slowdown. A 7.9% m/m increase in the construction sector was the top…
The recent rise in market-based inflation expectations has caught the attention of market participants. Some investors have begun to worry that the Federal Reserve might be losing control of its inflation mandate by cutting rates sooner than it should. But…
According to BCA Research’s US Bond Strategy service, until labor market cracks emerge, the path of least resistance for bond yields is probably higher, but the potential near-term upside in yields is limited. The team is monitoring three indicators that…
Europe credit flows are stabilizing, hence a major drag on the region’s growth will dissipate. What does this development imply for European equities?
The 303-thousand increase in nonfarm payrolls in March came in well above consensus expectations of a moderation from 270 thousand to 214 thousand. Healthcare, the public sector and construction were the top contributors to employment growth. Moreover, the…
The past week brought a slew of positive US economic data, all suggesting that conditions remain robust and a recession is not imminent. The ISM Manufacturing PMI crossed into expansion for the first time since September 2022, the number of job openings…