Europe
The EUR/SEK has been on a strong upward trend, appreciating 13% since its 2021 lows. However, its bull run is coming to an end. According to BCA’s European Investment Strategy team, this cross is now expensive and short- and long-term momentum indicators have…
The preliminary estimate of the European Commission’s consumer confidence indicator rose by 1.7 points to a 1-year high of -19 in February, in line with expectations. This marks the fifth consecutive improvement in household sentiment. Firming consumer…
According to BCA Research’s European Investment Strategy service, the green light to buy and overweight European banks and financials will come once the ECB relents on its hiking campaign. The positive long-term outlook for European financials, including…
Long-term drivers, including the growing ability of banks to returns cash to shareholders, point toward a strong structural performance for European financials. However, the ECB’s aggressive tightening campaign could still spoil the party.
The four-month-long outperformance of Eurozone equities relative to US stocks has recently stalled. Multiple factors explain this dynamic. A strengthening US dollar reduces foreign gains when expressed in US dollars. Thus, EUR/USD’s 2.7% decline since…
According to BCA Research’s Global Fixed Income Strategy service, European investment grade corporates are the most attractive among corporate bond markets in the US and Europe. Last year’s rise in US and European corporate bond yields to more “attractive”…
Data released on Monday shows Swiss inflation reaccelerated and came in above consensus estimates in January. Headline CPI inflation rose from 2.8% y/y to 3.3% y/y, exceeding expectations of 3.1% y/y. Notably core CPI inflation broke above the Swiss…
Our Central Bank Monitors support the recent shift in tone from central bankers in Europe. Find out what it means for European fixed-income portfolio allocation.
Chinese money and credit data were stronger than expected in January. The RMB 5.98 trillion surge in total social financing is significantly above December’s RMB 1.31 trillion increase and beat expectations of a RMB 5.40 trillion rise. New yuan loans came in…
The German DAX has rallied by 26.4% since the beginning of Q4 2022, outperforming the Euro Stoxx 50 by 5.7% in the process. With industrial equities accounting for a relatively large share of the German index, the bourse is benefitting from the improvement…