EEA News and Press, The European Equity Fund Inc. From 06/07/21

Global supply chain woes persist in May. Asia manufacturing performance on the line amid supply constraints. Sustained supply and demand gap could lead to price stickiness. For further details see: Global Manufacturing PMI Highlights Sustained Supply Constraints And Pric...

First of all, we see a very strong rebound in economic activity this year for the reasons that we discussed earlier, vaccines, fiscal policy, monetary policy support. We think there will be a temporary surge in inflation over the next few months, but we also think that we will see mea...

Eurozone manufacturing continued to grow at a rate unprecedented in almost 24 years of survey history in May but also indicated record capacity constraints. Production growth would have been even stronger in May had it not been for record supply delays. The combination of strong d...

Taper talk is back, and with it the risk of higher USD rates volatility. Big liquidity going back to the Fed has eased, but is still very large. NGeu will make an earlier-than-expected start in the Euro bond market and is set to become a key contributor to the growth of sovereign ...

A sea-change in cryptocurrencies’ market sentiment has taken place. In our analysis we have identified higher interest rates as the trigger that will burst the financial asset bubble. Therefore, we can say unequivocally and, without having to delve into monetary theory, pro...

Several research studies have found significant liquidity risk premium in inflation-linked markets, both in developed and emerging markets. After substantial QE, G7 central banks now hold a high proportion of outstanding government debt, reducing the "free-float" in government debt ma...

Bonds and stocks rarely stay positively correlated for long. Something had to give. Unfortunately, it was market sentiment. We’re now increasingly in a "risk off" environment where markets reflect what they see as a deteriorating outlook. The ECB pre-meeting expectations ma...

Bonds are back in favour, and there is a range of potential reasons why that is so. As always, there is never only one explanation, but the usual central bank suspects bear some responsibility. The Fed's rising tide of cash has to be invested somewhere, while dovish ECB comments a...

The intention of the Section 232 tariffs on steel and aluminum was to stop the long-term decline of the US steel industry by protecting domestic producers from low-cost imports. However, the strategy shifted a substantial cost to steel consumers, who employ far more workers than the s...

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...