EEA News and Press, The European Equity Fund Inc. From 07/24/21

The virus is once again raising the prospects of slowing the economic recovery that was unevenly unfolding. The ECB's new forward guidance signaled that bond purchases and low rates will prevail until the staff forecasts that the 2% target can be sustained. Discussions about the p...

All eyes are on the US next week as the Fed meets and we head into peak earnings season. Earnings season is off to a very strong start and it will step up a notch next week with a number of big tech companies reporting. There’ll also be a raft of economic releases which will gr...

We feel the ECB missed the mark by not making more explicit reference to asset purchases. In the new guidance as in the old, the end of purchases remains subordinated to the rates forward guidance. The upshot to yesterday’s ECB meeting is more purchases for longer, but dissent ...

Growth-oriented asset classes are likely to shine, but not equally. Above-trend growth is a supportive environment of risky assets like equities or credit. On valuation grounds, equities are looking a little cheaper. Geraldine Sundstrom and Erin Browne discuss PIMCO’s views...

Despite the arrival of ‘freedom day’ in the UK and the strength of other developed market economic recoveries, global equity market progress has been relatively muted in recent months. Should profits forecasts match expectations, markets could trade sideways as earnings ...

Rate markets seem to have fallen through a rabbit hole into a fantasy world where every new bit of information points to lower growth. That the rally in rates, and associated curve flattening, is occurring at a time the phase of economic acceleration comes to an end can create a misle...

Risk appetite is deteriorating fast, thus providing a rationale for a further drop in interest rates. A further deterioration would call central bank tightening into question and validate flatter curves. What is new is that other markets are giving signs of coming around to this v...

Markets have been propelled by a fairly simple story in the past nine months, split across two themes. First, market prices have been driven by the expectation that vaccination will once and for all allow us to put the virus in our rear-view mirror, and secondly, that fiscal and monet...

We view China's monetary policy loosening as unlikely to derail a focus on quality growth in the medium term, supporting our views on Chinese assets. U.S. consumer price index (CPI) rose more than expected in June amid the restart dynamics. China’s economy grew slightly slower ...

As 2021 got underway, many investors saw European equities as an opportunity: cheap, high-quality stocks on the cusp of a robust economic recovery, with a potential added boost coming from an appreciating euro against the US dollar. However, the region's botched handling of the initia...