Highlights Investment Grade: Investment grade corporate bond total returns will be close to zero or negative during the next 12 months. The bonds are also likely to outperform duration-matched Treasuries during that period, but excess…
Highlights We cannot predict how China will manage Evergrande precisely but we have a high conviction that it will do whatever it takes to prevent contagion across the property sector. However, China’s stimulus tools are losing…
BCA Research’s Foreign Exchange strategists maintain a bearish outlook for the US dollar. US growth momentum is starting to rotate away from the US to other economies. Meanwhile, central banks are beginning to shift towards…
Home prices around the world are continuing their march higher. Canada’s Teranet-National Bank Composite House Price Index accelerated to 18.4% y/y in August from 17.8%. Similarly, the UK’s Rightmove House Price index advanced 5.…
The possibility of Chinese real estate developer Evergrande’s collapse threatens the stability of the country’s economy and financial markets through multiple facets. The company accounts for an outsized share of outstanding…
Highlights Economy – The inflation question is unresolved, and it will remain that way for the rest of the year: August’s CPI report had something for everyone and ensured the debate will continue. Doves could celebrate the…
At first glance, Singapore’s exports appear to be sending a warning about the state of global manufacturing. The country’s non-oil domestic exports disappointed in August, falling 3.6% m/m versus an anticipated 2.4% increase. The…
At first blush, Australia’s labor market recovery appears to have accelerated in August. The unemployment rate fell to a 13-year low of 4.5% versus expectations it would rise 0.4 percentage points to 5.0%. However, the lower…
Inflationary pressures are likely to keep the Bank of Canada at least as hawkish - if not more hawkish - than the Fed. Headline CPI accelerated to a 18-year high of 4.1% y/y in August. The diffusion index's extremely…
Highlights The House Ways and Means Committee’s tax proposals are a slight positive surprise for investors. They envision raising $1.5 trillion in new revenue, down from expectations of $2.6 trillion. The House’s tax plans…