Euro Area
Is the BoE making a mistake moving toward rate cuts before the end of the summer? What would such a move mean for UK asset prices?
The ECB delivered its first rate cut in June, moderating the degree of restriction rather than pivoting outright to easy monetary policy settings. Indeed, the rate cut was accompanied by an upward revision of inflation and growth forecasts. Since then,…
Eurozone equities sold off 7% from their June 6 highs, according to MSCI indices. The surprise French legislative elections and renewed fears of populism and European Union exits are spooking investors. Yet, our European Investment strategists argued that…
European assets are selling off as investors panic about the upcoming French election. Is this panic justified, and if so, for how long?
According to BCA Research’s Global Investment Strategy service, aggressive fiscal stimulus and labor market flexibility contributed to the relative strength of the US consumer. However, adverse region-specific effects also played a role. Most notably, the…
On Wednesday, the European Commission announced it would impose tariffs ranging between 17% and 38% on imports of Chinese EVs starting next month. These duties will be applied on top of existing 10% across-the-board tariffs on all Chinese EV imports, and…
According to BCA Research’s Geopolitical Strategy service, the European parliamentary election was not an earthquake. It saw an improvement in right-leaning political groups and a deterioration in both centrist and left-leaning groups, as expected. …
Europe did not witness a major policy reversal. Inflationary pressures are coming down, enabling the ECB to cut rates and European states to maintain soft budgets. Geopolitical challenges ensure that European parties continue to cooperate on national defense, economic security, and energy security.
The ECB is now firmly in easing mode, even if it refuses to pre-commit to a specific rate path. What does this data dependency mean for the euro and European yields?
After holding rates steady over the past nine months, the ECB delivered on its widely expected rate cut on Thursday. The Governing Council lowered all three key ECB interest rates by 25 bps, bringing the refinancing, marginal lending facility and deposit…