EEA News and Press, The European Equity Fund Inc. From 07/02/21

UK is largely missing out on the recent surge in demand for inputs from the world's factories. Looking at the first six months of 2021, since the end of the Brexit transition period, the average underperformance of UK goods exporters compared to the eurozone has been the highest since...

US inflation continued to soar in May, with the Core Consumer Price Index up 0.7% month over month and 3.8% year over year. Fears around rising rates center on the rapidly recovering US economy, which will soon require tapering of purchases in the US Federal Reserve’s quantitat...

The risk tone has worsened, but month-end flow as well as supply muddy the picture and we see the risk of a pullback today. The ECB has provided the market with a clear reaction function to trade off; the key data releases ahead will help US markets get a clearer grasp of the Fed's. ...

Faced with higher inflation numbers, the Federal Reserve has begun to create more meaningful parameters around its evolving stance on monetary policy. Although the changes could be less dramatic than many expect, we believe that investors should be prepared for higher market volatilit...

The reopening should continue across the major developed economies through the second half of 2021. The focus for markets has shifted to the strength of the growth rebound, the implications for inflation and the timing of central bank moves to taper asset purchases and eventually rais...

Inflation figures, which had been more harmonized than not for decades, all of a sudden they are acting a bit too idiosyncratic for once. That’s actually a red flag warning against inflation. The Treasury market is the farthest out of whack to inflation estimates. US inflation ...

USTs maintain the global lead for outright yields. EUR curve dynamics have decoupled amid EU supply and a steady drumbeat of dovish comments from the ECB to ensure a calm summer. Country CPI data bears upside risks today, but nothing that the ECB wouldn't look through. For f...

The potential for higher U.S. taxes, coupled with regulatory risks and shifting growth momentum, tempers our near-term enthusiasm for U.S. equities. Euro area business activity surged in June as the region catches up on the restart that has been led by the U.S. and UK. Investors w...

US stocks rallied to record highs and dollar weakness returned as investors shrug off the hawkish tilt given at last week’s FOMC policy decision. The trading week ended with a mixed inflation report that contained a downside surprise with the monthly reading. The upcoming w...

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...