Market Overview – June 2022

FROM OVERHEATING TO RECESSION? · 5 Juli 2022

In the last few months, the world economy has suffered two shocks. The exit from the pandemic generated the first. Euphoric American and European consumers with increased purchasing power have caused a shock in demand. This shock strongly disrupted global supply chains. The consequence was a sharp rise in inflation. This first shock was followed by a second, more sudden, on the supply side. Indeed, the Russian invasion of Ukraine caused commodity prices to soar, pushing inflation to spectacular levels. Investors quickly became concerned about the extent of the tightening of central bank policies induced by this explosion of inflation, especially about the consequences on financial asset prices. The response was scathing and painful. All asset classes fell sharply.

Market Overview - June 2022 Survol des marchés - Juin 2022