Yesterday, the Bank of England slightly upgraded its economic forecasts when compared to the spring Inflation Report. While the BoE guided for no policy tightening for an extended period of time, it threw a cold shower on traders…
Please note that we will be on our summer holidays next week. Our next report will come out on August 20. Highlights The 30-year bond yield is the puppet master pulling the strings of all other investments. Where 30-year bond…
The Swedish Manufacturing PMI also continues its rebound, which is a direct consequence of the pick-up in the global PMI. Sweden possesses a small and very open economy where trade accounts for 90% of GDP. Moreover, Sweden…
Highlights Global Bond Yields: The growing divide between falling negative real bond yields and rising inflation expectations in the US and other major developed economies may be a sign of investors pricing in slower long-run potential…
Markets have shrugged off the rise in COVID-19 cases in the US and new clusters in other places such as Spain, Hong Kong, Melbourne, and Tokyo (Chart 1). The MSCI All-Country World Index is now only 4% off its all-time high in…
Dear Client, In lieu of our regular report next week, we will be sending you a Special Report from my colleague Garry Evans, Chief Global Asset Allocation Strategist. Garry will be discussing the social and industrial changes that will…
Highlights The tech sector faces mounting domestic political and geopolitical risks. We fully expected stimulus hiccups but believe they will give way to large new fiscal support, given that COVID-19 is weighing on consumer confidence…
Highlights The use of physical distancing and face masks restricts any activity that requires the use of your mouth and nose in proximity to others. We estimate that this restriction could wipe out 10 percent of jobs. Hence, as…
BCA Research's European Investment Strategy service concludes that while the pandemic remains in play, the European stock market will struggle to outperform the US stock market. To understand what has been happening in the…
Between October 2018 and May 2020, the US-German 10-year yield spread narrowed by 155 bps. This decline mostly reflected a faster fall in US yields than German ones. Since early May 2020, the spread has narrowed a further 14bps.…