FEEU News and Press, Barclays ETN FI Enhanced Europe 50 ETN From 07/21/21

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...

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...

The world economy has performed about as well as could be expected, if one takes as given the pandemic and the inadequate public health response. Global growth in 2020 was negative 3.3 per cent, which is very low historically. But the economic outlook is stronger now than one would ha...

Bond buying is adding a liquidity excess that is bullying market rates to extraordinary lows, practically into submission. It looks too much and should be unwound, but not just yet, it seems. At least Chair Powell is not giving too much away so far. In Europe, inflation expectatio...

US inflation is solidly rounding at 5%. Bond yields are nowhere near that, and some $800 billion is getting shipped back to the Fed on a daily basis (overnight). "Forget the taper, just stop the buying already" - that's what the bond market would say, if it could talk. Chair Jay P...

EUR rates shrugged the new ECB policy goal, perhaps because it was well-telegraphed and, arguably, already acted upon in recent years. Marginally lower real rates may ensue. The global flattening might run into some profit-taking today, and faces long-end US supply next week. But ...

The fall in market rates has little to do with the Fed, at least not directly. Rates were falling long before the Fed had its hawkish wake-up moment. Real rates have remained stubbornly negative too, which made little sense against a vibrant macro story. The 10yr real yield is now bac...

With all the talk about inflation expectations, central bank policy, rising Treasury yields and fiscal policies, equity investors are trying to make sense of the market by focusing on the interest rate sensitivity of valuations and the tug of war between growth stocks and value stocks. ...