The Swiss KOF Economic Barometer continued its descent in August, falling four points to 86.5 – below its long-term average. The deterioration was broad-based with all variable groups contributing negatively to the headline…
Preliminary estimates indicate that German inflation accelerated from 7.5% y/y to 7.9% y/y in August (8.8% y/y for CPI inflation calculated according to the EU’s harmonized methodology). Higher energy prices – which…
According to BCA Research’s European Investment Strategy service, it is still too early to overweight European equities. Euro Area stocks are much cheaper than their US counterparts, but too many headwinds continue to…
Executive Summary Cheap But Challenged European equities have bottomed in absolute terms, but they are still underperforming US ones. Eurozone equities are very cheap compared to US ones, but their profitability remains…
Executive Summary Our negative view on the summer rally is coming to fruition, with equities falling back on the negative geopolitical, macro, and monetary environment. China is easing policy ahead of its full return to autocratic…
The German Ifo Business Climate Index edged down to 88.5 in August, from 88.7, above expectations of a stronger deterioration to 86.8. The current situation and expectations sub-components ticked down 0.2 points and 0.1 points,…
UK Gilts have been selling off sharply since the beginning of August. The yield on the 10-year UK government bond is now over 80bps higher than it was at the start of the month. The move has been even more pronounced at the…
After a brief reprieve since mid-July, EUR/USD has once again broken down over the past week, falling below parity on Monday. The euro’s unrelenting decline over the past year has made it an attractive buy on a valuation…
The flash release of the European Commission’s Eurozone consumer confidence in August provides preliminary evidence that sentiment may be in the process of bottoming. It ticked up by 2.1 points to -24.9, surprising…