EEA News and Press, The European Equity Fund Inc. From 05/25/21

Volatility sellers have been proven right in May, and carry has become more attractive. Consumer confidence data will help gauge inflation pressure and labour market tightness, but we doubt this will prove decisive, thus putting carry traders in the driving seat near term. The pro...

Demand for goods and services is surging at the sharpest rate for nearly 15 years across the eurozone, according to flash PMI data from IHS Markit, as the region continues to reopen from covid-related restrictions. The headline IHS Markit Eurozone Composite PMI® rose from 53.8 in...

One of the main questions that will determine the near-term direction in financial markets, and in rates in particular, is whether the current spike in inflation heralds a period of faster activity and price growth, or whether it will bring the demise of the current recovery. The most...

From December 2020 to April 2021, HICP inflation in the eurozone jumped from -0.3% to 1.6%, the fastest acceleration in the history of the series. Energy inflation, partly due to COVID-19-related base effects, has accounted for the bulk of the pick-up, along with other special factors...

Issuers and investors alike are embracing Environmental, Social and Corporate Governance (ESG) as core financing or investment philosophies. The majority of the inflows seen in Euro IG funds have been into ESG funds. In fact, non-ESG funds have generally seen outflows. It is also visi...

Eurozone market rates continue to creep higher, with the German 10yr about to count down to zero. The fact that this is happening as US market rates remain in a deep Fed-induced trance is not a bad thing. Rather it suggests if, or likely when, US market rates awake from their slum...

Tapering fear is not affecting all financial markets alike, reflecting the nature of purchases, but also the drama surrounding each ECB meeting. Even if the path towards normalisation at the ECB is far from straightforward, the extent of its approximately €100 billion purchases...

The Mother of All Recoveries (MOFAR) is not a U.S. story; it’s a developed-market story. Inflation is not likely to start galloping into the double digits or even high single digits. I expect it to be closer to 3%. If a company can’t grow its earnings in this environ...

Supply-side bottlenecks have increased prices for businesses. The longer these disruptions last, the higher the likelihood businesses pass on the rising costs to consumers. The impact of supply chain disruptions will also be felt in the medium to long term. For further detai...

Global PMI employment index hits highest for 14 years as companies step up hiring amid surging demand and optimism about the year ahead. Job gains led by the developed world, notably the US and UK. Banking reports fastest ever jobs growth, only tourism and recreation reports falli...