The upheavals on the monetary markets are depending on worldwide instability and may subsequently nonetheless shake the inventory markets this yr, publicizes the specialists of Raiffesen. The SMI index has misplaced greater than 15% for the reason that begin of the yr.
The sharp correction recorded on the fairness markets for the reason that starting of the yr 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,” mentioned Matthias Geissbühler, funding director of Raiffeisen Switzerland. Consequently, earnings expectations are too excessive and must be corrected decrease, he added.
The fairness markets ought to subsequently, because the half-year outcomes are printed, stay risky over the approaching months.
For the reason that begin of the yr, the Swiss Inventory Trade’s flagship SMI index has fallen 15.8%, after leaping 20.3% final yr.
On this context, the consultants of the St. Gallen financial institution suggest Swiss equities and favor the securities of corporations with a stable stability sheet and a very good positioning in the marketplace. Companies capable of move on rising prices to their clients by worth changes are most well-liked.
With regard to the financial outlook, Raiffeisen confirmed that it expects gross home product (GDP) development in Switzerland of two.2% this yr. “We’re presently in an surroundings of stagflation,” mentioned 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 just lately warned “additional tightening could also be wanted.”