The upheavals on the monetary markets are depending on worldwide instability and will subsequently nonetheless shake the inventory markets this yr, pronounces 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 just isn’t 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. Because of this, earnings expectations are too excessive and must be corrected decrease, he added.
The fairness markets ought to subsequently, because the half-year outcomes are revealed, stay unstable over the approaching months.
Because the begin of the yr, the Swiss Inventory Alternate’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 firms with a stable steadiness sheet and a superb positioning in the marketplace. Companies in a position to cross on rising prices to their prospects by 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 yr. “We’re presently in an setting 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 enhance.
The Swiss Nationwide Financial institution (SNB) thus raised its key charge 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.”