We are pushing back the anticipated start date for a Eurozone recession and assessing how it affects our equity stance.
BCA’s European Investment Strategy team continues to expect the German economy to trail that of the rest of Europe. Since 2020, Germany has fallen behind, with its real GDP lagging that of the broader Eurozone by 5%. The…
The stock market of the Eurozone’s largest economy keeps grinding higher with the DAX 40 closing at new highs last week. Since its October low, the index of German blue-chip companies advanced by 20%. Does this rally…
According to BCA Research’s European Investment Strategy service, the underperformance of European assets relative to the US is due its lagging productivity, even after adjusting for sectoral compositions in their stock…
The preliminary Eurozone inflation release suggests that price pressures eased by less than anticipated in February. Headline CPI inflation slowed from 2.8% y/y to 2.6% y/y (slightly above expectations of 2.5% y/y. Similarly,…
In this Strategy Insight, we take a comparative look at two of the largest spread product sectors in Europe – Italian government bonds and investment grade corporates. We make the case for favoring Italy over investment grade in the…
According to BCA Research’s European Investment Strategy service, Germany will likely drag the overall Euro Area into contraction, even if, individually, other countries manage to avoid a recession. This slightly better…
Outside of Germany, European growth fares better than many believe. Will this hidden resilience help the euro and push German yields higher?
The messaging from the minutes of the ECB’s January meeting was similar to the Fed. Although Governing Council members noted that “for the first time in many meetings, the risks to reaching the inflation target were…