Economic Growth
Optimism among investors and economic agents continues to improve in the Eurozone. The Sentix Economic Index for the Eurozone rose from -16.8 to -15.8 in January – in line with consensus expectations and marking the third consecutive increase. The current…
Growth in US disposable income has outpaced inflation nearly every month since mid-2022. Consumption is principally driven by income, but in the US it has gotten a meaningful assist the last two years from the drawdown of excess savings accumulated over the…
According to BCA Research’s China Investment Strategy service, the structural landscape of China's property market today is, in many aspects, more challenging than the real estate markets in Japan and the US at the peak of their housing bubbles: The…
The dollar has kicked off 2024 on a tear. The closely followed DXY index bottomed on Thursday December 28th, and has since risen almost 2%. Year-to-date, the only major currency that has held up against the dollar is the Mexican peso, with the yen continuing…
Friday’s Eurozone CPI inflation report was in line with consensus estimates. Headline inflation reaccelerated from 2.4%y/y to 2.9%y/y in December, in part reflecting the impact of the end of energy subsidies in Germany and France. The pace of energy deflation…
After rallying by 11.2% between October 5 and December 27, the price of copper has since been on a losing streak, falling in each of the subsequent six trading sessions. Notably, this decline has coincided with weakness among some other pro-cyclical financial…
A soft landing can be achieved but not maintained. We are cutting our tactical recommendation on stocks from overweight to neutral and scaling back our long-duration stance.
China’s Caixin PMI delivered a positive signal on Thursday. The Services index climbed from 51.5 to 52.9 in December, beating expectations it would remain more or less unchanged. The improvement in the Services PMI lifted the Composite index by 1 point to a…
The market is excited by the idea that the Fed will cut rates early this year, even without a recession. But is that likely, with inflation still set to be around 2.8% mid-year?
December PMIs indicate that the global manufacturing sector is not experiencing a meaningful rebound. The Global Manufacturing PMI declined from 49.3 to 49.0 in December, marking the sixteenth consecutive month of a sub-50 reading. The output, new orders,…