With the surprising fall in inflation in the US, the scenario of a “soft landing” has become more likely. Meanwhile, the shocking attempted assassination of US presidential candidate Donald Trump at the weekend will likely have an impact on the current election campaign.
Article on tag "markets"
Market commentary: What will the second half of 2024 bring?
The second half of 2024 has already kicked off on the financial markets – but what can investors expect from it? After expectations of interest rate cuts in the US were pushed back further and further in the first half of the year, the scope for the US Federal Reserve could increase again in the remainder of the year. The main focus is likely to be on upcoming political decisions – which could also lead to greater fluctuations.
Investment View | June 2024
What’s happening on the markets? In our Investment View, the experts of our Investment Division regularly provide insights of current market events and their opinion on the various asset classes.
Capital markets outlook 2024: good opportunities in the US election year
After a difficult market year in 2022, many asset classes performed much better this year. The outlook for the coming year 2024 is also positive – the central banks’ turnaround in interest rates has brought about a return to normality on the bond market and, with the rise in yields, is also opening up new opportunities for investors. At the same time, the ongoing geopolitical tensions in particular pose a challenge. With the improved yield opportunities for bonds, mixed funds are also coming back into focus.
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Market commentary: Is the interest rate peak reached?
“Higher for longer” has become the mantra of the powerful central bankers in recent months. Monetary policy is likely to remain restrictive longer than originally expected. Regardless of whether the major central banks will follow up with a final interest rate step in autumn, the interest rate peak has probably been reached and “the worst” is behind us.
![How restrictive are the current interest rate policy and financial environment really? How restrictive are the current interest rate policy and financial environment really?](https://blog.en.erste-am.com/wp-content/uploads/2023/10/Weekly_20231011_Title_en-370x210-1697011594.png)
How restrictive are the current interest rate policy and financial environment really?
In line with the surprisingly strong economic indicators in the US, government bond yields have risen significantly in recent months. This is putting pressure on the prices of many classes of securities and intensifying discussions about how restrictive interest rate policy really is. Could the higher level of yields make the central bank’s job easier in the form of further interest rate hikes?
![Attack on Israel: Reaction of the markets Attack on Israel: Reaction of the markets](https://blog.en.erste-am.com/wp-content/uploads/2023/10/Blogbeitrag_Israel_Title_en-370x210.png)
Attack on Israel: Reaction of the markets
The terrorist attack on Israel by Hamas last weekend dominates the international headlines. The markets are reacting to this with price declines, but the extent of the movements has so far been limited.
![Turnaround in the Energy Market: Power Companies Raise Forecasts, Oil Companies’ Profits Drop Turnaround in the Energy Market: Power Companies Raise Forecasts, Oil Companies’ Profits Drop](https://blog.en.erste-am.com/wp-content/uploads/2023/08/karsten-wurth-wIYDNL0M_p4-unsplash-scaled-370x210-1691415564.jpg)
Turnaround in the Energy Market: Power Companies Raise Forecasts, Oil Companies’ Profits Drop
The decline in crude oil prices has led to a trend reversal in the energy market this year: while many power companies have recently raised their profit forecasts, the major oil companies suffered massively from the recent drop in crude oil prices. Meanwhile, in the effort to reach climate targets, the trend toward renewable energies continues unabate
Immaculate disinflation: Is that possible?
Can price stability, i.e. inflation of 2%, be achieved without a recession? The further decline in inflation in the US in June has raised expectations for this favourable scenario. However, a look in the rear-view mirror calls for caution. In the past, a central bank-induced decline in inflation has often been accompanied by a recession.
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Recession, inflation, key interest rates: Economic outlook for the second half of the year
The feared recession has so far failed to materialise and inflation is also falling. Nevertheless, the risks remain on the downside. What could be in store for the markets in the second half of the year?