Market Overview – December 2022

Inflation remains the engine of performance of financial assets · 8 December 2022

Inflation remains the central engine of financial markets. Since the beginning of the year, galloping inflation has prompted all central banks to raise their rates. The primary objective was to slow the rate of inflation. This sudden rise in rates had a significant effect on all asset classes. In the short term, it caused bond prices to plummet as investors rushed to price future rate hikes into their prices. Ditto, on the side of equities, those exhibiting increased sensitivity to interest rates were strongly affected, such as technology companies in particular.

Market Overview - December Survol des marchés - Décembre