Most recently, central banks have signaled a somewhat less sharpish stance, as an effect of the rapid key rate hikes on the monetary environment has already become visible. However, recent economic data are dampening hopes for a rapid decline in inflation, as Chief Economist Gerhard Winzer explains in his market commentary.
Last weekend, for the third time in two months, a US bank found itself in turmoil. After Signature Bank and Silicon Valley Bank (SVB) slid into crisis in March after customers withdrew billions in funds, First Republic Bank has now been hit. A look at the history books shows that banking crises and bank runs have happened time and again. However, the lessons learned from them helped to make the banking system more robust and stable.
The Greek sovereign debt crisis is now more than 10 years old. Many observers saw this event as the starting point of a never-ending story. However, if one looks at the recent past, Greece convinced with positive aspects. Many see the upcoming parliamentary elections on May 21 as the last major obstacle to regaining the country’s investment grade rating.
The Vienna Institute for International Economic Studies sees the economies of Eastern Europe on a growth path. The bottom seems to have been reached. Now investing in the region’s leading companies?
The global economy grew strongly in the first quarter of 2023. At the same time, inflation remains too high, which is why central banks will continue to pursue a restrictive monetary policy. Although growth indicators are good to strong, there are therefore increased risks of recession.
The hot phase of Turkey’s election campaign has begun, with parliamentary and presidential elections to be held simultaneously in the country on 14 May. In addition to the consequences of the earthquake disaster in early February, the Turkish citizens are also suffering from the massive inflation.
Putting money aside is important. But it is equally important for said money to potentially earn a return. This is where the fund savings plan comes in.
Since the banking problems in the US emerged in March, share prices have risen and expectations for future key interest rates have fallen significantly. However, inflation dynamics remain the most important factor for the markets, but unfortunately also one that is difficult to assess.
Despite the recent turmoil in the banking sector, both companies and the global economy are currently proving to be extremely robust. Read more about the current market environment in the commentary by Gerald Stadlbauer, Head of Discretionary Portfolio Management at Erste AM.
The OPEC+ oil cartel’s member countries surprised the markets with an unexpected production cut announcement early this week, causing a surge in crude oil prices. The cuts were a “precautionary measure aimed at supporting the stability of the oil market,” OPEC+ said.
