The upheavals on the monetary markets are depending on worldwide instability and may due to this fact nonetheless shake the inventory markets this 12 months, proclaims the specialists of Raiffesen. The SMI index has misplaced greater than 15% for the reason that begin of the 12 months.
The sharp correction recorded on the fairness markets for the reason that starting of the 12 months shouldn’t be but over and the inventory markets ought to nonetheless present important 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. In consequence, earnings expectations are too excessive and must be corrected decrease, he added.
The fairness markets ought to due to this fact, because the half-year outcomes are revealed, stay unstable over the approaching months.
For the reason that begin of the 12 months, the Swiss Inventory Alternate’s flagship SMI index has fallen 15.8%, after leaping 20.3% final 12 months.
On this context, the specialists of the St. Gallen financial institution advocate Swiss equities and favor the securities of firms with a stable stability sheet and a great positioning in the marketplace. Companies capable of go on rising prices to their clients by means of worth changes are most popular.
With regard to the financial outlook, Raiffeisen confirmed that it expects gross home product (GDP) development in Switzerland of two.2% this 12 months. “We’re at present in an setting 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 enhance.
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.”