European natural gas prices have recently been trending higher with the Dutch TTF gaining 66% since late July. The proximate cause of the rally is supply concerns. The risk of strikes at Australian LNG plants are a threat to the…
Earlier this week, EUR/JPY closed at a fresh 15-year high, bringing its year-to-date gain to 14%, before losing some ground over the subsequent two days. To the extent that the recent increase in global bond yields continues to…
Yesterday we highlighted that the August update of the Philly Fed’s Nonmanufacturing Business Outlook survey sent a negative signal, with the New Orders, Sales, and Employment components all deteriorating. On Wednesday, the…
According to BCA Research’s European Investment Strategy service, German yields are unlikely to experience a decisive break out that would carry them to 3%. Five economic forces suggest that German yields are unlikely to…
German producer prices indicate that inflationary pressures continue to moderate. The producer price index’s 6.0% y/y drop in July is more pronounced than the anticipated 5.1% y/y decline and marks the first annual decrease…
European yields are testing the upper end of their recent trading range. Is the European economic outlook consistent with an imminent breakout?
Despite a decline from 7.9% to 6.8% in July, the UK’s headline CPI surprised to the upside. The slowdown in headline CPI mostly reflects the deceleration in the annual inflation for housing, water, electricity, gas and…
According to BCA Research’s European Investment Strategy service, the earnings outlook of Eurozone equities will continue to deteriorate over the coming two quarters despite the improvement in real economic activity.…
Sweden’s preliminary Flash GDP data, which is subject to revisions, points a 1.5% quarter-over-quarter and 2.4% year-over-year contraction. However, this report could potentially constitute the trough in the country’s…
European real GDP growth is stabilizing, so why would European equities continue to trade sideways for the remainder of the year? The answer lies with nominal growth and its impact on earnings.