Current developments in the financial markets present a mixed picture. On one hand, there is optimism in the stock markets, bolstered by positive signals such as the long-term assessment of U.S. stocks driven by so-called Mega Forces, particularly the rise of artificial intelligence. Despite these positive prospects, volatility remains an issue, triggered by trade conflicts and retaliatory tariffs, most recently between the U.S. and China. On the other hand, inflation trends are on the brink of a turning point. After easing inflation rates since mid-2023, a rise could be expected by 2025, influenced by an economic upturn across Europe and increasing prices of industrial metals. Amidst this situation, the European Central Bank continues to maintain its cycle of interest rate cuts, with the prospect of future rate discussions upon economic recovery. For investors, there is an opportunity to benefit from short-term U.S. government bonds, while caution is advised with stocks until the future development becomes clearer.
07.05.2025