EEA News and Press, The European Equity Fund Inc. From 03/26/21

In the first quarter, the global economy continued to recover from the steep losses of a year ago, but at a weaker pace as a result of still high COVID-19 cases and slow starts to vaccinations in many countries. The MSCI Emerging Market Index outperformed EAFE, ending 2020 up 18.7%. ...

The weak US 7yr auction is a timely reminder that the backdrop points to higher rates, and the relief we see currently should prove temporary. This general area of the curve is rich in any case, which may also have proven a deterrent to demand at the auction. The ECB will try to d...

Upgrades to consensus EPS forecasts have continued apace, further cementing expectations for a V-shaped global growth recovery this year and next. FTSE World estimates for this year have been raised significantly over the past three months (from 15% to 28%), bolstered by upgrades for ...

US leads global expansion, followed by UK. Manufacturing rises across the board, albeit limited by supply disruptions. Virus restrictions, vaccine roll-outs, business sentiment and stimulus lead to varying service sector trends. For further details see: U.S. Leads Develo...

Flash Eurozone PMI at 52.5 in March signals return to growth. Manufacturing expands at record pace, helping offset service sector weakness. Factory input cost inflation highest since March 2011, as supplier delivery times lengthen to the greatest extent in the survey's 23-year his...

Rates markets are seeing relief as concerns over the disruption caused by last week's SLR decision are allayed, and with infection rates rising again in Europe. Such relief could prove temporary, but the ECB will use every chance to widen the gap versus the US. TLTRO money has jus...

Surge in Chinese exports drives noticeable rise in global exports over first two months of 2021. Statistical noise makes annual comparisons challenging but data add to view that global economy continues to recover. Pick-up in trade has exacerbated logistical difficulties, especial...

There is a relentless feel to US yields. Even when they are not rising, there is a certain inevitability that they will. With the Fed targeting policy at the tail of the distribution, the outcome is an ever-steeper curve. The eurozone is still struggling on many fronts, so no surp...

Positive changes since the Global Financial Crisis include fewer excesses and imbalances, the ECB's asset purchase programs, and the creation of the ESM and RRF. However, following the COVID-19 shock, six eurozone member states will have public debt to GDP ratios well in excess of 100...

Ned Davis Research estimates that a 2% yield in the US 10-year bond could lead the Nasdaq to fall 20%, and with it the entire stock market globally. A small bounce in yields would simply collapse the massive deck of cards of risk built into the economy when rates were manipulated down...