Europe
A restrictive policy by the ECB and a weak manufacturing sector will create headwinds for European stocks this summer. How should investors position their portfolios in this context?
In Thursday’s BoE meeting, policymakers highlighted that stronger-than-anticipated food price gains contributed to recent upside surprises in the UK’s inflation rate. Rapidly climbing food inflation hit a 19.6% y/y in March. The UK is not alone. Similar…
As expected, the Bank of England raised its bank rate by 25bps to 4.5% on Thursday, marking the 12th consecutive rise. Notably the updated projections show a significant improvement in the economic outlook. The upwards growth revisions reflect falling energy…
The change in the BoE’s tone has likely altered the path for sterling. In this report, we explore if the BoE’s lens for monetary policy is justified, and provide some targets for the pound.
The change in the BoE’s tone has likely altered the path for sterling. In this report, we explore if the BoE’s lens for monetary policy is justified, and provide some targets for the pound.
At 3.8%, the yield on 10-year UK Gilts is now back near where it was in early March. This marks a round-trip after the yield fell to as low as 3.3% in the weeks following the emergence of bank stress in the US and Europe. Meanwhile, both US and German 10-year…
The rebound in European economic conditions that began at the end of 2022 has ended. On Monday, the Eurozone Sentix sent a pessimistic signal about investor confidence. The headline index fell from -8.7 to -13.7 in May – disappointing expectations of a…
According to BCA Research’s European Investment Strategy service, the ECB is wading into policy-mistake territory because it is overemphasizing lagging indicators such as wages at the expense of leading indicators such as credit and money flows. European…
The ECB continues to focus on lagging indicators and risks once again to cause a policy error that unduly hurts European growth. What does it mean for investors?
As anticipated, the ECB downshifted the pace of rate hikes on Thursday, delivering a 25bps increase. Moreover, the central bank announced that it “expects” to end APP reinvestments in July. President Christine Lagarde continued to characterize inflation as…