The upheavals on the monetary markets are depending on worldwide instability and will due to this fact nonetheless shake the inventory markets this 12 months, declares the specialists of Raiffesen. The SMI index has misplaced greater than 15% because the begin of the 12 months.
The sharp correction recorded on the fairness markets because the starting of the 12 months just isn’t but over and the inventory markets ought to nonetheless present vital volatility, Raiffeisen specialists estimated on Thursday.
“A pointy rise in producer costs, continued supply difficulties and better financing prices are anticipated to weigh on company margins,” stated Matthias Geissbühler, funding director of Raiffeisen Switzerland. Because of this, earnings expectations are too excessive and have to be corrected decrease, he added.
The fairness markets ought to due to this fact, because the half-year outcomes are revealed, stay risky over the approaching months.
For the reason that begin of the 12 months, the Swiss Inventory Change’s flagship SMI index has fallen 15.8%, after leaping 20.3% final 12 months.
On this context, the consultants of the St. Gallen financial institution suggest Swiss equities and favor the securities of firms with a stable stability sheet and a great positioning in the marketplace. Corporations in a position to move on rising prices to their clients by means of value changes are most well-liked.
With regard to the financial outlook, Raiffeisen confirmed that it expects gross home product (GDP) progress in Switzerland of two.2% this 12 months. “We’re at the moment in an atmosphere of stagflation,” stated Geissbühler.
Confronted with hovering inflation, central banks ought to proceed to tighten their financial insurance policies. However in a context of financial slowdown, the dangers of recession improve.
The Swiss Nationwide Financial institution (SNB) thus raised its key price by 50 foundation factors in mid-June to -0.25%. And SNB Chairman Thomas Jordan not too long ago warned “additional tightening could also be wanted.”