Europe
Our European strategists are upgrading the communication services sector to overweight on a structural investment horizon. In March, they highlighted the sector's near-term attractiveness. Since the Great Financial Crisis, the European telecom…
Europe’s telecoms are cheap just as Brussels moves to tear down barriers and spark cross border consolidation. Read why this blend of high yield, defensive earnings, and a powerful policy catalyst sets the stage for a major sector re rating.
Expect broad-based dovish surprises from major central banks, and stay overweight UK and euro area government bonds. Our Global Fixed Income, European, and FX strategists published a joint update of BCA’s Central Bank Monitors. They expect the Bank of…
The rebound in Eurozone sentiment is encouraging but headwinds persist, justifying a defensive stance on European assets. The May ZEW expectations index jumped to 11.6 from -18.5 in the Eurozone, with Germany’s gauge also rising to beat estimates. However,…
The easing bias remains, but not all central banks are equal. This Central Bank Monitor update reveals who is ready to cut more and who is still pretending not to.
European equities have some short-term support, but global growth risks will cap gains. Our Chart Of The Week comes from Mathieu Savary, Chief European Investment Strategist. Mathieu sees probable but limited upside for European equities in the near term. His…
The inflation divergence between the US and Eurozone drives our call to stay long US duration. Inflation, typically a lagging indicator, blends slow-moving labor pressures with fast-moving supply drivers. The COVID inflation spike was a rare fusion of both,…
Our GeoMacro strategists remain negative toward US equities as President Trump’s efforts to limit the foreign investments of US firms will undercut their competitiveness. FDI brings clear strategic and financial gains, both for the investing firms…
We apply our systematic approach to investing based on economic, inflation, and monetary policy surprises to the major global bond markets. The economic regimes defined by the current macro-surprises setup confirm our existing fixed-income portfolio tactical recommendations.
April’s Eurozone inflation data supports BCA’s bullish Bund stance and cautious view on EUR/USD. Headline HICP inflation held steady at 2.2% y/y while core ticked up to 2.7% from 2.4%. Services inflation rebounded to 3.9%, driven by temporary…