Equities
Global growth will weaken in the coming months, yet monetary authorities worldwide will be reluctant to ease policy. This state of affairs foreshadows a clash between markets and policymakers in the months ahead. China’s recovery is losing steam. The latest divergence between Emerging Asian and LATAM currencies will not last.
Singapore’s trade numbers continue to send a warning for the global economy. The year-on-year pace of decline in non-oil domestic exports deepened in April after slowing in the prior two months. Importantly, the weakness is particularly pronounced among…
According to BCA Research’s US Equity Strategy service, investors should stay underweight banks on a tactical investment horizon as the banking turmoil is far from over, and the industry’s profitability will be under pressure. The team has been underweight…
The US Retail Sales report painted a resilient picture of American consumers in April. Although the 0.4% m/m increase in overall retail sales fell below consensus estimates of a 0.8% m/m rise, the details of the report surprised to the upside. In particular,…
The latest Chinese economic data releases for April signal a disappointing domestic recovery. Weak economic conditions during the Shanghai lockdown last April created a low base effect which boosted the annual comparison. However, the 5.6% y/y increase in…
According to BCA Research’s Emerging Markets Strategy service, investors should stay underweight Indonesian equities within Emerging Market and Emerging Asian equity portfolios. Unprecedented export earnings have pushed Indonesia’s current account into a…
After a period of significant underperformance in 2022, US Growth stocks are regaining lost ground vis-à-vis Value. The S&P 500 Growth index has outperformed its Value counterpart by 7 percentage points since the start of the year. Notably, most of…
The US banking system remains unsettled over two months after the failures of Silicon Valley Bank. The two weeks following regulators’ seizure of First Republic (FRC) have featured dizzying swings in the stock prices of several regional banks as investors…
According to BCA Research’s European Investment Strategy service, a large set of variables points to some additional correction in European stocks over the coming months. The collapse in the Euro Area M1 is consistent with a significant decline in Eurozone…
A restrictive policy by the ECB and a weak manufacturing sector will create headwinds for European stocks this summer. How should investors position their portfolios in this context?