EEA News and Press, The European Equity Fund Inc. From 04/08/21

Europe's Covid-19 and vaccination trouble may be temporary, but the US recovery is powering ahead. Economic and cash flow divergences are likely to bring wider USD-EUR rates differentials. With the risk of a spike this quarter. For further details see: USD-EUR Rates Dive...

Strong global manufacturing production reported in March, but growth stymied by supply constraints. Rising backlogs of work hint at further robust expansion in second quarter. But inflation concerns are fanned by record rise in factory gate prices. For further details see: ...

If you think last Friday's US payrolls report was a one-off, think again. Another increase in excess of 1 million is coming for April. The only mystery is why US market rates have not risen by more. We think they will. The 5-year is now cheap to the curve, finally. As the 5-year c...

As I've been saying ever since this all started, I expect the US to recover first, then the UK and then Europe to come a very poor third. This is partly about stimulus policies and also about the underlying flexibility of the varied economies. The current US jobs blowout is suppor...

Once again, the German Constitutional Court is at the root cause of potential market tension. Last Friday, the European flagship project demonstrating solidarity took a severe hit. The decision could be another episode in the long saga of how the German Constitutional Court is (tr...

It appears that bond markets are returning to pricing the economic recovery. Quarter-end flow might still complicate price action, but US data later this week should bring rates back on their upward trend. In Europe, the release of Spanish and German inflation data should provide ...

This week, a series of tit-for-tat sanctions on high-ranking individuals went back and forth between a coalition of the US, UK, EU and Canada on one side and China on the other. Two major retailers – Nike and H&M – are the targets of a potential boycott in China due ...

EU policymakers and Eurozone central bankers are externalizing the threat from within and the associated blame. The EU and the ECB may have failed the global policymaking test. The obscured Eurozone banking crisis obscures a potential financial crisis and a potentially associated ...

A new IMF study assesses the impact of the pandemic on European banks' capital through its effect on profitability, asset quality, and risk exposures. Supportive policies are extremely important in reducing both the extent and variability of banks' capital erosion. For many larger...

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%. ...