EEA News and Press, The European Equity Fund Inc. From 08/16/21

The volatility of the dollar does present some problems for the world but, for better or worse, it is the world’s reserve currency and I see no real threat to that status on the horizon. I positioned our portfolios for a weak dollar period early last summer and maintained those...

The key driving force in the foreign exchange market that has lifted the dollar is a reconsideration of the trajectory of Fed policy. The US recovery is uneven, and this will be illustrated by next week's reports. After contracting in Q1, the Norwegian economy snapped back in Q2, ...

During July, global consensus earnings estimates have re-accelerated to the upside, representing another bullish impulse in the tug of war between high valuations on the one hand and strong profits momentum on the other. Despite market worries of a loss of momentum in the near term, t...

Inflation accelerates alongside expectations of further interest rate hikes by central bank. Stockpiling efforts and greater global demand push input costs up at a significant pace. Demand conditions remain strong, but concerns around automotive supply chains persist. For fu...

We may well have seen the trough in both USD and EUR rates this summer, but we expect USD rates will rise much faster from here. With Fed tapering coming into view, the divergence with ECB QE policy will become more obvious. There is divergence on the US front end too, as bills re...

Hawkish soundbites and positive economic news dominate for the US, despite global growth concerns. Officials talking about tapering within a few months should help focus minds at the long end of the curve, despite a supportive technical backdrop for bonds. A glut of cash remains i...

The U.S. is passing the baton in leading the economic restart to other developed markets; but we see fresh challenges in many emerging markets. Better-than-expected U.S. jobs data drove U.S. 10-year bond yields to the highest level in two weeks. U.S. stocks hit record highs. China...

The continued flattening move in the rate market suggests no major change in market dynamics as the case for Fed tightening becomes increasingly convincing. More upbeat economic data this week, and hawkish soundbites, would only displace bond demand towards longer maturities. We m...

Central banks are being forced to address many challenges—inequality, climate change, and debt management to name but three. Given these tensions, will controlling inflation retain its overriding precedence? As priorities change, we believe inflation is on the verge of an i...

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...