BCA Research’s European Investment Strategy service concludes that European small-cap stocks have room to rally versus their US counterparts. Despite near-term hurdles, European economic activity could remain strong…
As anticipated, the Bank of England raised the Bank Rate by 75bps to 3% on Thursday. The decision marks the largest interest rate hike in 33 years and brings the cost of borrowing to a 14-year high. Notably, seven of the nine MPC…
The Norwegian krone was the best performing G10 currency in October, appreciating by 4.7% versus the USD over this period. This marks a reversal following a 19% decline in the first nine months of the year, during which it was…
Older workers have deserted the labour force in the US and the UK, but not so in the Euro area and Japan. The result is that wage inflation is red hot in the US and the UK, but not so in the Euro area and Japan. Hence, the Bank of…
This week’s report examines the state of the global monetary tightening cycle and addresses some frequently asked questions about the Fed’s QT program. New yield curve trades are recommended for the US and German yield curves.
Stay short Greater China assets. Stay long Japanese yen. Hold back on Brazil for now but look forward to opportunities in future.
The ECB increased interest rates and announced the start of its balance sheet wind down; yet, markets took the news as a dovish outcome. Are we really getting close to the end of the ECB’s tightening campaign? How asset prices will…
Preliminary estimates indicate that German GDP growth accelerated by 0.3% q/q in Q3 from 0.1% q/q in Q2 and against expectations it would contract. The performance of the German economy is all the more notable that not only was…
As expected, the ECB delivered another 75bp rate hike on Thursday. It also announced changes to the TLTRO terms and conditions – raising the borrowing costs of the facility, and offering banks an early repayment option. The…
Falling inflation will allow bond yields to decline in the major economies over the next few quarters. As such, we recommend that investors shift their duration stance from underweight to neutral over a 12 month-and-longer horizon…