EEA News and Press, The European Equity Fund Inc. From 08/05/21

Global equity markets have diverged widely lately, with European and US stocks strongly outperforming the rest of the world. Despite recent strength, Europe has performed roughly in line with its global peers since last year. Contributions to the FTSE All-World ex USA returns were...

So historically we have not seen negative yields. Ever. I’ve looked at a lot of history books, I have not found persistent nominal negative yields, at least in written history. Right now, it would be a little bit tough to say that interest rates are free. Interest rates are whe...

The Eurozone’s economy as measured by GDP expanded by 2% q/q in the second quarter, significantly faster than expected, indeed faster than the economies of the US and China. The most important driver of the Flash Composite PMI for July was the Flash Eurozone Services PMI Activi...

Capital expenditure expectations appear to have recovered from pre-pandemic levels in most major regions and are trending upwards according to analyst estimates. For the U.S. index, the 12-month forward capital expenditures estimate is currently $885.6 billion, up 13.8% year-over-year...

A marked fall in business optimism in July hints that companies could become reticent to expand capacity while the pandemic continues to hit supply chains. Output growth continued to run behind the growth of new orders for a fifth straight month, meaning backlogs of work rose sharply ...

The growth of eurozone manufacturing cooled slightly in July after a record-breaking expansion during the second quarter. Many firms clearly want to produce more goods but are simply unable to due to constraints. Mounting concerns about how the Delta variant poses a further threat...

As mentioned in previous TSI commentaries, the monetary backdrop will stop being supportive for the US stock market after the annual TMS growth rate drops below 6%. All else remaining the same, the relatively small amount of monetary inflation in China over the past 16 months would pa...

We see China’s regulatory crackdown that recently rattled markets likely to moderate, alongside a dovish shift in macro policy, for the near term. The Federal Reserve noted further progress in the economy as expected; we see a tapering of asset purchases unlikely to start befor...

Stocks are expensive, and people aren’t buying because they want to but rather because they feel like they have to. When people say they are panicking into “the market”, what they really mean is they are panicking out of bank deposits or other safe assets. This pa...

Germany’s flash July 2021 inflation estimate came in hot yesterday, boosted mostly by comparisons to July 2020’s VAT-free situation. Despite Deutschland’s oversized contribution and influence, Eurostat reports today how for Europe as a whole there was a whole lot ...