The US retail sales release delivered a positive signal about the US economy in December. The 0.6% m/m increase in overall retail sales beat expectations of a more muted acceleration from 0.3% m/m to 0.4% m/m. Importantly, the…
The CHF/JPY has enjoyed a strong upward trend, appreciating by 52.6% since January 2019. Currently, it is 84.6% overvalued relative to PPP, which questions whether a turnaround is imminent. Japan faces more significant…
Results of the ZEW survey sent a slightly positive signal on German investor sentiment. The economic expectations indicator rose to an 11-month high in January – beating consensus estimates of a decline. This increased…
Canadian government bond yields jumped on Tuesday, with the 10-year yield rising by nearly 14 basis points. While most other major DM government bonds also sold off, the move in Canadian yields was relatively more pronounced.…
The New York Fed’s Empire State Survey delivered a somber signal about US manufacturing conditions. The headline general business conditions index plunged from -14.5 to -43.7 in December, disappointing expectations of an…
The market will eventually be forced to react to rising odds of a sharp US national policy reversal. Investors should overweight government bonds and defensive equity sectors.
The US manufacturing renaissance, spurred on by reshoring, automation, and government spending, is running its course but progress has slowed on the back of tight monetary conditions and the manufacturing recession. The deceleration…
According to BCA Research’s European Investment Strategy service, investors should not chase European equities higher from current levels. The soft-landing narrative has captured the minds of investors. The expectations…
The commodity complex struggled last year with the Goldman Sachs Commodity Index falling by 12% despite the relatively favorable performance of other cyclical financial assets. Several factors contributed to this weakness. In the…