Europe
According to BCA Research’s Foreign Exchange Strategy service, the domestic economy does not really explain the recent weakness in the Norwegian krone. Some of this weakness can be attributed to structural and idiosyncratic factors, one being persistent…
In a widely expected move, the Riksbank lowered its policy rate from 3.75% to 3.5% in August. It had kept rates on hold in June, after having led many other major DM central banks in easing policy in May. The Riksbank also signaled it could cut as many as…
The ZEW survey of Eurozone business expectations decreased by a whopping 25.8 points to 17.9 in August. Notably, expectations for Germany’s current situation disappointed, worsening from an already depressed -68.9 level to -77.3, and expectations of future…
In this report, we gauge the reasons behind the persistently weak Norwegian krone, despite what appears to be benign domestic economic conditions.
Regular readers are familiar with our expectation that the stabilization in global growth this year will be fleeting. The US has been the main source of demand in this cycle. We view the latest string of US employment data as further evidence the US…
According to BCA Research’s European Investment Strategy service, investors should fade the rebound in European equities and bond yields as the euro is also at risk. Last week’s bounce in global equities is temporary. The pause in the carry trades unwound,…
The unwind of yen carry trades caused violent tremors across the globe. Was this shock a one-off event or the prelude to more troubles?
German Industrial production and factory orders continued their slump in June. The usual powerhouse of the Euro Area economy has been trailing its peers throughout 2024. While both industrial production and factory orders surprised to the upside in June,…
After briefly breaking a 27-month streak of negative sentiment back in June, the Eurozone Sentix Economic index disappointed in August. The overall index worsened from July’s negative reading to -13.9, below expectations of a milder deterioration. The…
Absolute return investors should be tactically cautious on Greek assets. Dedicated EM equity portfolios, however, should overweight Greek stocks.