EEA News and Press, The European Equity Fund Inc. From 06/25/21

With the economic recovery undeniably ramping up, we ask managers for their thoughts on valuations in the markets. While lockdowns were protracted affairs for so many of us, the economic recovery has been astoundingly rapid in many parts of the world. Regardless of the shift in to...

The Fed finds itself between a rock and a hard place: either it keeps inflating or the whole confidence-based valuation of financial assets collapses. Either it raises interest rates or the dollar collapses. The lessons from the past have taught us that central bankers only notice a b...

The BoE has dealt a temporary setback to hawkish bets, but only inflation will show when it eventually pulls the trigger. In any case, we expect this cycle to be shallow. Supply pressure will be felt by EUR rates in the coming days, but it should prove temporary. Next week's US jo...

The US continued to lead the global economic rebound in June, according to flash PMI data from IHS Markit, but also showed signs of growth peaking from May's record expansion. The slower growth in the US and UK was in part linked to short-term difficulties in sourcing sufficient input...

The eurozone economy is booming at a pace not seen for 15 years as businesses report surging demand. As business conditions return to normal in 2021, the relationship of the PMI with GDP will therefore likely be fully re-established. However, the strength of the upturn - both with...

The Bank of England's latest statement is a little more upbeat than might have been expected, but crucially offers no new clues on rate hike timing. The Bank has kept both rates and QE on hold this month, despite a vote to end the latter early from outgoing Chief Economist and arch-ha...

There remains tremendous uncertainty and prospects of a post-pandemic recovery vary greatly across countries, as it is bound to happen at different paces. And the divergence of per capita incomes in the world is rising as an aftermath of the pandemic. The pandemic will leave scars in ...

The global economy has reached an important milestone in the second quarter of 2021, surpassing the pre-pandemic real GDP peak attained in the fourth quarter of 2019. After a 3.5% contraction in 2020, global real GDP is projected to increase 6.0% in 2021, its strongest advance since 1...

The longer a period of elevated inflation - or at least fear of elevated inflation - persists, the higher the risk that a perceived transitory phenomenon could become permanent. We still believe this period will be transitory, but the transition period looks longer and wobblier than p...

Many will disagree that the Fed has already hiked rates, but it has. Just by 5bp, and only techncial, but there is still an impact. Pricing the front end with the excess of liquidity is tough, but it still looks too low (in yield). The long end looks a bit lost now, having flatten...