UPV News and Press, ProShares Ultra FTSE Europe From 09/25/21

The next few months are going to be extremely interesting in the markets, with central banks becoming less comfortable with the level of stimulus they’re providing, economic recoveries slowing and market risks mounting. Evergrande has come to the forefront of investors minds in...

Another day of heavy central bank action should keep markets busy. In the case of the BoE, we see no point in further hawkish warnings. The reaction should be a knee-jerk, and short-lived curve steepening. For further details see: Rates Spark: Central Bank Palooza

Beginning with what is perhaps the best indicator of growth potential in the real economy, as opposed to just the financial economy, the G3 credit impulse is now firmly in negative territory after peaking in the latter stages of 2020. Turning to manufacturing, building permits for new...

The Evergrande saga continues to dictate daily ups and downs in the rates market. Government bonds benefit from safe haven demand despite stagflation fears and the risk of central bank response, but these haven’t disappeared. USD and GBP curve flattening seem like the most ...

In terms of central bank meetings, the week ahead is one of the busiest. In our understanding, the market has been anticipating this meeting since the spring to provide further guidance that the Fed will reduce the pace of bond purchases. The Dollar Index bottomed, and the Bannock...

Developed market yield curves are displaying late-cycle dynamics. This is nowhere as obvious as on the GBP curve as hikes are being brought forward, and as the curve flattens. This makes it all the more difficult for long-end rates to rise. For further details see: Rates...

The lower-than-expected CPI pushed US rates back into the driving seat, taking Bunds for a ride. We are also watching hawkish ECB risks that could potentially narrow the UST-Bund spread. We think such tightening is more likely to be temporary and is more inclined to follow the ECB...

In addition to battery element shortages, the chip shortage has limited electric vehicle production. At the auto show in Munich last week, several auto executives commented on the chip shortage. Overall, the electrification of vehicles may be characterized by perpetual shortages for y...

The ECB is looking through higher headline inflation and inflation swaps. We doubt these will be enough to change easing expectations in December, but hawkish comment risks will remain a threat to carry trades. In the US, inflation prints have not affected breakevens much in recen...

The US employment data and the ECB meeting are behind us, and the Federal Reserve, Bank of Japan, Bank of England, and Norway's Norges Bank lie ahead. The general sense one gets by surveying the recent string of data is that economic activity has downshifted. With most of the rece...