Economy
UK inflation was hotter-than-anticipated in February. Headline CPI inflation accelerated from 10.1% y/y to 10.4% y/y – surprising consensus estimates it would slow to 9.9% y/y. The monthly rate increased to 1.1% m/m, following a 0.6% m/m decline in January…
The Bank of Canada’s summary of the discussions by Governing Council members ahead of its March 8 decision to stand pat produced a dovish signal on Wednesday. Although policymakers highlighted that “the economy remained in excess demand” and “the labor market…
The Fed hiked rates by 25 basis points on Wednesday and made some important changes to its official forward interest rate guidance. Modifications to the policy statement signal that the Fed’s tightening cycle is close to its peak. Specifically, “the Committee…
BCA Research’s China Investment Strategy service expects both iron ore and steel prices to drop by 15%-20% from their current levels and they recommend that investors short stocks for global steelmakers and global mining companies. Iron ore and steel prices…
Both iron ore and steel will have oversupplied markets in 2023. The path of least resistance for iron ore and steel prices will be down in the coming months. We expect both iron ore and steel prices to drop by 15%-20% from their current levels. We recommend that investors short stocks for global steelmakers and global mining companies.
The ZEW Indicator of Economic Sentiment sent a negative signal for Eurozone risk assets. The expectations index for Germany tumbled from 28.1 to 13.0 in March – slightly below expectations of 15 and marking an end to the five-month streak of improving morale.…
The deep contraction in South Korean exports corroborates the signal from other Asian trade data that global demand for manufactured goods remains weak. Exports dropped by 17.4% y/y in the first 20 days of March, marking the seventh consecutive monthly…
Commodity prices contain important information about the health of the global economy. For example, copper prices typically rise during periods of strong industrial activity, signaling that global growth is firm. Meanwhile, an increase in gold prices could be…
According to BCA Research’s European Investment Strategy and Geopolitical Strategy services French aerospace and defense equities will benefit the most from rising defense spending and should be highly favored. The upcoming defense spending cycle in Europe…
German PPI inflation decelerated from 17.6% y/y to 15.8% y/y in February – the lowest since September 2021. Although the February print came in above consensus expectations calling for a more significant slowdown to 14.5% y/y, it nevertheless continues a…