Inflows into European equities hit historical record
With worries about Greece receding, European equities saw inflows increasing to a historical record of $6 billion in the week that ended on July 22, data compiled by Bank of America Merrill Lynch show....
View ArticleHigh-yield assets underperform as Fed rate rise nears
The “mania” for high-yielding assets is showing “major fatigue” as the moment of the first interest rate rise in nine years by the Federal Reserve draws near, analysts at Bank of America Merrill Lynch...
View ArticleThe next European crisis: the real estate sector
If you’re curious to see where the seeds of the next financial crisis are in Europe, take a look at what’s happening in the real estate sector. As money-printing by the European Central Bank is...
View ArticleEuropean equities benefit from Fed interest rate hike talk
Another strong week for European equities in terms of capital flows shows the asset class well on track to post its strongest year ever. Ever since the European Central Bank (ECB) started its...
View ArticleExtreme bearishness triggers contrarian ‘buy’ signal
Extreme bearishness dominated the markets last week, when investors rotated out of high-beta assets like high-yield debt and emerging markets bonds and equities to high quality government bonds, money...
View ArticleSentiment turns extremely bearish as investors flee emerging markets
Fear deepened and sentiment is now extremely bearish, while outflows from risky assets intensified last week, data from Bank of America Merrill Lynch showed. The bank’s proprietary bull/bear index...
View ArticleFour scary things about the stock market crash
For years, investors haven’t seen such a crash in the stock markets. In what was supposed to be a sleepy holiday month, some traders had to cancel their holidays because of the market turmoil. The...
View ArticleExtreme fear leads to record outflows from equities
An indicator of investor sentiment has fallen to extreme fear levels, after sinking deeper into bearish territory in previous weeks. Bank of America Merrill Lynch’s bull/bear index shows a reading of...
View ArticleEurozone banks get help from ECB collateral measure
A small step for the ECB, a big step for eurozone banks could be one way of looking at a recent announcement by the European Central Bank that it is widening the array of financial instruments that it...
View ArticleChina cuts growth estimate, but stock market selloff is overdone
China cut its economic growth estimate for last year, and although the revision was minuscule, it was enough to send jitters through markets again. The Shanghai composite closed down around 2.6% on...
View ArticleIn 2017, the ECB should learn to break the rules
This is going to be a crucial year for the European Union. There are more and more voices predicting its disintegration. With the political events that are ahead, it’s not a possibility that should be...
View ArticleThe bad type of inflation is here
Governments around the world have a nascent problem on their hands: inflation. Any economic recovery will depend on how well they manage price rises. The post The bad type of inflation is here appeared...
View ArticleItaly tourism season is crucial for post-Covid recovery
Italy reopens for tourism after the Covid-19 pandemic in what could turn out to be a crucial moment for the whole of the EU. The post Italy tourism season is crucial for post-Covid recovery appeared...
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