Eurozone equity markets have had a difficult year thus far, losing some 13.2% as of November 28, as measured by the iShares MSCI Eurozone ETF, EZU. While a slowing economy and a 6% weakening of the euro offer a partial explanation of the US-dollar return from these markets, a number of political uncertainties appear to […]
A messy Brexit is the last thing Wall Street needs By Matt Egan and Jordan Valinsky, CNN Business Sunday, November 18th 2018, 2:32 AM HST The odds of a messy Brexit, where Britain leaves the European Union without a transition deal, have increased significantly. Such an outcome would be destabilizing and create enormous uncertainty. And […]
Excerpt below from: “Brexit turmoil: Here’s what’s at stake if U.K.’s May faces a leadership challenge” Published: Nov 16, 2018 1:35 p.m. ET, by Anneken Tappe In could be a tense weekend for currency traders and others keeping a close eye on the political turmoil surrounding the British government’s efforts to negotiate its exit from […]
On November 13, British Prime Minister Theresa May and her Brexit negotiating team reached agreement with the European Union (EU) negotiators on a draft withdrawal treaty. The next day, after a very difficult five-hour meeting, May secured the agreement of her cabinet. Following the cabinet meeting, she told reporters “The choice before us is clear: […]
The European Central Bank (ECB) left its monetary policy stance unchanged at its September 13 meeting. Net asset purchases will end in December, but with the Bank’s maintaining its stock of assets, the reinvestment of redemptions will maintain substantial stimulus. No increase in policy interest rates is signaled until at least after the end of […]
Eurozone equity markets have encountered significant headwinds in the second quarter of this year despite continued robust economic growth above estimated potential for most Eurozone economies. The continued strength of the Eurozone economies is emphasized in this month’s “OECD Economic Surveys: Euro Area.”[i] These economies have been growing since 2014. “GDP growth is expected to […]
In this note we take a closer look at Japan, where the equity market has also so far weathered some very dramatic domestic political storms. The Japanese economy is participating in the global economic recovery that is projected to continue at least through this and next year, and in the accompanying strong growth in global trade, which should persist unless a serious trade war develops.