After the price rally at the end of last year, the markets started 2024 with price losses. The ongoing positive correlation between bonds and equities is striking. Both asset classes have fallen equally recently, which makes diversification in a portfolio more difficult. But the year has only just begun. We therefore take a look at 10 key topics for 2024 that could be helpful when putting together a portfolio.
Article on tag "Eurozone"
Encouraging fall in inflation
Since the beginning of November the prices of both risky security classes such as equities and credit-safe government bonds have been on the rise. The market appears to be increasingly pricing in a so-called “soft” landing for the economy. The probability of this actually increased over the course of the year. However, the economic data published in recent weeks and months does not contradict the “hard” landing scenario.
Inflation continues to fall: Do interest rate hikes now come to an end?
Inflation in the Eurozone is expected to fall further. According to initial estimates, the inflation rate fell more sharply than expected in August. With a view to the next ECB interest rate decision at the end of October, the question now arises: Do interest rate hikes now come to an end?
Pause on interest rate hikes?
Once again it’s all about interest rates this week. Will the ECB take a break this time and leave key interest rates unchanged? There is a lot to be said for it.
What are the lasting results of the central bank meeting in Jackson Hole?
At the annual meeting of central bankers in Jackson Hole Federal Reserve Chair, Jerome Powell, summed up the uncertain environment as “navigating by the stars in a cloudy sky”. This relates, among other things, to the uncertainty about the level of the neutral interest rate, the lagged effect of key-lending rate hikes on economic growth and inflation, and the drivers of inflation.
Summer, sun & early election: Spain gets ready for a tight race
The Spanish economy is showing resilience, unlike other countries in the euro area. Now, however, the southern European country is preparing for early elections next weekend, with a tight race looming.
Inflation in Europe likely to have peaked
Inflation data in Europe recently showed a surprisingly significant slowdown. The decline in energy prices in particular had a dampening effect. Read our latest blog post to find out about the current inflation in the individual EU countries.
US labour market: strong employment growth
Surprisingly good figures came from the US labor market in the previous week. Despite the strong growth in employment, however, economic growth has recently been rather meager. Recession risks also remain at an uncomfortably high level.
Meager Growth
Global growth is likely to cool significantly in the second quarter. At the same time, recession risks remain uncomfortably high, as Chief Economist Gerhard Winzer writes in his market commentary. The further course of negotiations on the US debt ceiling is also likely to cause tension on the market.
Central banks weigh risks
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.