Market Overview – November 2022

Bad news is good news · 8 November 2022

Macroeconomic data continued to deteriorate during the month. The rise in interest rates, inflation, the energy crisis in Europe, confinements in China, the strength of the dollar is starting to put a heavy strain on economies. In the United States and Europe, the leading growth indicators all point to a sharp slowdown. All this bad news strangely pleased investors. Hopes that central banks would slow the pace of interest rate hikes generated positive sentiment. Nevertheless, interest rates in the United States and Europe continued to rise until the middle of the month. In the United States, the 10-year rate rose above 4%. However, the rise in interest rates was not accompanied, as we had become accustomed to, by a marked fall in the equity markets, on the contrary. Equities have indeed benefited from positive investor sentiment and the start of the corporate earnings season.

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