Euro area small-cap stocks are attractively valued compared to their large-cap counterparts. They have underperformed by 20% since April 2022, but small caps’ earnings have kept pace with those of large-cap firms. Hence,…
German factory orders delivered a positive surprise on Tuesday, unexpectedly increasing on both a monthly and annual basis. The 8.9% m/m increase in December came in well above consensus estimates of a 0.2% m/m decline. This…
Our Central Bank Monitors support European central bankers’ decision to hold rates steady. Find out what it means for European fixed-income portfolio allocation.
Is the rebound in European PMIs enough to boost the appeal of European risk assets?
We present the performance review of the Global Fixed Income Strategy Model Bond Portfolio for 2023. We also discuss the outlook for 2024 performance based on our Key Views for the year. The portfolio is positioned to benefit from a…
Over the past few months, falling inflation has provided a boost to real wages in the Euro Area which returned to growth in 2023Q3 after 9 consecutive quarters of decline. This dynamic in turn improved the purchasing power of…
Germany’s IFO survey is sending a warning. The Business Climate Index unexpectedly fell for the second month in a row in January. Importantly, increased pessimism about the current situation and the outlook are driving this…
Government bond yields rallied and yield curves steepened across the Eurozone on Thursday following a less hawkish than anticipated tone from the ECB. As expected, the central bank kept policy rates unchanged and reiterated that…
Middle East conflict, extreme US policy uncertainty, Chinese economic slowdown, US-Russian proxy war, and Asian military conflicts do not create a stable investment backdrop for 2024. Our top five “black swan” risks may be highly…
Results of the ECB’s quarterly Bank Lending Survey suggest that the tight monetary policy stance is still weighing on the Eurozone economy. Banks tightened credit standards for businesses and consumers further in Q4…