Developed Countries
The Fed hiked rates by 25 basis points on Wednesday and made some important changes to its official forward interest rate guidance. Modifications to the policy statement signal that the Fed’s tightening cycle is close to its peak. Specifically, “the…
Some quick takes from today’s FOMC meeting.
The ZEW Indicator of Economic Sentiment sent a negative signal for Eurozone risk assets. The expectations index for Germany tumbled from 28.1 to 13.0 in March – slightly below expectations of 15 and marking an end to the five-month streak of improving morale.…
Commodity prices contain important information about the health of the global economy. For example, copper prices typically rise during periods of strong industrial activity, signaling that global growth is firm. Meanwhile, an increase in gold prices could be…
According to BCA Research’s European Investment Strategy and Geopolitical Strategy services French aerospace and defense equities will benefit the most from rising defense spending and should be highly favored. The upcoming defense spending cycle in Europe…
German PPI inflation decelerated from 17.6% y/y to 15.8% y/y in February – the lowest since September 2021. Although the February print came in above consensus expectations calling for a more significant slowdown to 14.5% y/y, it nevertheless continues a…
Unsurprisingly, financials are the worst performing equity sector since the fallout of SVB and Signature bank, with the S&P 500 Banks index down 17% since March 8 (see Market Focus). A question facing investors is whether bank stocks are now attractive…
Given that banks are the cause of the recent market turmoil, it is unsurprising that financials are the worst performing sector since the start of the tumult earlier this month. Yet, the equity weakness has been broad-based across most US and global equity…
According to BCA Research’s Foreign Exchange Strategy & Global Fixed Income Strategy services, there are a few shifts that could be immediately expected with an end to the BoJ’s Yield Curve Control (YCC) program. First, the outperformance of stocks…
The Russia-Ukraine war has prompted Europe to ramp up its defense spending. This will greatly benefit its defense industry, especially if defense coordination across the EU increases.