EEA News and Press, The European Equity Fund Inc. From 04/23/21

The pace of recovery has begun to diverge across economies, with vaccination progress and the scale of government stimulus among the biggest swing factors. Macro disparities have also begun filtering into EPS growth expectations. Cyclically sensitive sectors have dominated the upg...

Flash Eurozone PMI at second-highest since September 2018, future expectations at new all-time high. Record expansion of manufacturing output accompanied by return to growth in services. Jobs growth highest since November 2018. Input cost inflation at decade high. PMI data...

For financial markets, the acceleration of European vaccination programs and the resilient confidence surveys in the face of tighter restrictions are reason enough to price the start of an economic recovery. For central banks, they are welcome but too tenuous to drive a change of policy. ...

The ability of Chinese manufacturers to meet demand has been constrained by the current scarcity of shipping containers. Supply chains were complex and tenuous before the COVID-19 virus pandemic, and have since become more so. Supply chains are difficult to manage, but indicators ...

This US stimulus looks like overkill and might well have a bigger impact on inflation than the US Federal Reserve hopes for, but there's no doubt that it will give a strong short-term boost to growth. The European policy response pales by comparison and remains bedeviled by internal d...

Rates are caught between improving macro conditions, mostly benefitting EUR rates, and greater risk aversion, mostly impacting US rates. The result is large movements but little direction. This morning, interest rates are back where they started the week after significant gyrations in...

A year ago, the COVID-19 crisis was beginning to pick up steam and optimism measured on many facets plummeted. In stark contrast to last year, we have a strongly recovering economy and, at least in the U.S., we have COVID-19 infections under control as vaccinations in our country are ...

While difficult to pinpoint the exact triggers of yesterday's rates sell-off in the eurozone, it did happen against a backdrop of growing optimism and an accelerating vaccine rollout. Even the ECB could acknowledge this during its press conference later this week, although we think th...

Central banks are often credited with saving the world with their aggressive monetary stimulus during the GFC in 2008. Japan offers compelling insights into the relationship between central bank balance sheets, money supply, and inflation. Some investors are betting on inflation t...

The euro remains the most undervalued of the major currencies, but not as cheap as it was a year ago when it was nearly 29% below the OECD's fair value calculation. The ECB has been encouraging a robust fiscal response, and while individual countries are boosting counter-cyclical spen...