EEA News and Press, The European Equity Fund Inc. From 09/03/21

Global manufacturing remained beset by unprecedented supply issues in July, which constrained output and drove prices higher. The analysis of survey responses suggests that the number of companies reporting lower production due to staff or materials shortages is running at around five...

We doubt the drivers behind the narrowing of USD-EUR rates differential will persist: supply will swing the other way ahead, and overly hawkish ECB comments sow the seeds of a mini-tantrum. We're at a crossroads on many fronts. Direction usually comes from the US, but not always. ...

ECB hawks are making the case for a reduction in PEPP purchases in 4Q, and for less monetary support generally. If there is disagreement, we’ll find out today or tomorrow. We doubt EUR rates can withstand both ECB and Fed tapering this year at current valuations. For ...

In his speech on Friday, Fed Chair Jerome Powell stressed that inflationary pressures are cooling and getting closer to the Fed’s 2% target rate. Powell also acknowledged that some inflation is a “cause for concern” and implied that higher prices could be more permane...

The US front end maintains a magnetic hold, pulling short rates down. A non-committal Fed puts the focus squarely on Friday’s jobs report. September tapering may yet happen, but US Treasuries were allowed a pause in their sell-off. We expect supply to be a more potent drive...

Surging U.S. inflation has outpaced inflation in Europe, China and elsewhere, as the rate hit a 13-year high of 5.4% in June and July. Rising U.S. inflation may be the result of divergent employment benefits or a consumer spending boom fueled by the government’s fiscal response...

Equities wobbled a bit midway through August, but they have since regained their mojo, all but confirming that the bull market in equities remains strong and unchallenged. A reduction in the pace of QE is coming, in both the US and Europe. Indeed, the pace of asset purchases already h...

The preliminary PMI estimates have already been released for many countries and are often good enough for investors. China's PMI is an exception. While Beijing continues to press with its regulatory and social reforms, economic policymakers are eschewing large-scale fiscal or monetary...

Eurozone nominal GDP is even lower than it was before the Lehman crisis. The Eurozone’s largest banks are over-leveraged, and their share prices question their survival. We should consider the political and economic consequences of a collapse of the Eurosystem. The fina...

Now that Jackson Hole is over, the focus shifts back onto the economic recovery. The euro area economy is ticking along nicely. Data from the UK this week showed that, despite all restrictions being lifted, the economy continues to face headwinds because of supply and labour short...