Most developed market central banks have paused hiking interest rates. With interest-rate differentials having been the most important driver of currencies over the last two years or so, the focus might now shift to other factors…
Contrary to the prevalent belief in the global investment community, goods/merchandise inventories in the US and East Asia are rather elevated. Financial markets respond to final demand fluctuations, not inventory restocking. Global…
The Swedish krona was among the worst performing G10 currencies on Thursday after the Riksbank kept the policy rate unchanged at 4%, surprising consensus expectations of a 25bps hike. The post-meeting press release underscored…
European flash PMI estimates for November sent a slightly less pessimistic signal on Thursday. The Eurozone composite PMI climbed by 0.6 points to 47.1, beating expectations of a more muted increase to 46.8. Notably, both the…
Global equities have had a stellar 2023, rising by 16% year-to-date and outperforming global bonds by roughly the same amount. However, the large concentration of US stocks in the Magnificent Seven has called into question the…
Confidence is on the mend in the Euro Area. The rebounding ZEW growth expectations index reveals that investors are becoming more optimistic. The German IFO's business climate index inched higher in October for the first time…
US durable goods orders delivered a negative surprise on Wednesday. New orders for manufactured durable goods dropped by 5.4% m/m in October, below consensus estimates of a 3.2% m/m decline. Moreover, the September increase was…
According to BCA Research's US Equity Strategy service, mid-caps underperform when spreads widen, although less so than Small as they are more financially robust and have better credit ratings. Small is the most leveraged…
Inflation has been in a downtrend for a few months now, which has translated into fading corporate pricing power. With wage growth still strong, and the cost of energy on the rise, the degree of companies’ pricing power…