Economy
According to BCA Research’s US Equity Strategy service while Telecoms are not attractive on a strategic investment horizon, as a low-beta defensive sector they offer excellent downside protection for a portfolio. The Telecom industry is incredibly…
Chinese economic data releases painted a mixed picture of domestic conditions on Tuesday. Chinese real GDP growth accelerated from 5.2% y/y to 5.3% y/y in Q1 2024, beating expectations of 4.8% and suggesting that economic momentum improved at the start of the…
UK stocks posted one of the largest positive abnormal returns (z-score) among the major financial markets we tracked in March. The MSCI UK index has gained 2% relative to Eurozone stocks since late February. However, the relative performance of UK equities…
Optimism about the future continues to boost investor confidence in the Euro Area. The ZEW Expectations series for the Eurozone (+10.4 to 43.9) and Germany (+11.2 to 42.9) surged and are now both at their highest in 26 months. Although investors’ assessment…
In the near term, favor oil and oil producers outside the Gulf Arab states. Over a 12-month horizon, favor US and North American equities, defensive sectors over cyclicals, and safe-assets. Within cyclicals, stick to energy and defense.
Advanced estimates for retail sales in the US grew by 0.7% m/m in March, down from an upwardly revised 0.9% m/m in February, but meaningfully outperforming expectations of 0.3% m/m. Retail sales ex autos also surprised to the upside, coming in at 1.1% m/m…
Headline inflation in Sweden came in at 4.1% in March. Lower food prices as well as lower inflation for recreation and culture were the main contributors to the drop. The biggest positive contributor was housing due to higher mortgage costs. The CPIF…
The preliminary reading of the University of Michigan gauge of consumer sentiment slid from 79.4 to 77.9 in April from 79.4, below expectations. Although both current conditions and expectations disappointed, the deterioration in expectations came against the…
According to BCA Research’s European Investment Strategy service, a tactical buying opportunity for EUR/USD is approaching. However, this will not lead to a renewed bull market, only to a bounce toward 1.10-1.12. Sentiment toward the euro is becoming…
In the short run, global risk assets are vulnerable due to rising oil prices and bond yields. Cyclically, a global economic downturn will weigh on global risk assets.