Market Overview – October 2022

All asset classes under pressure · 8 November 2022

The rise in global interest rates and the spectacular strength of the US dollar pushed all financial assets into sharply negative territory. In the United States, the central bank has confirmed its intention to raise interest rates until inflation falls, regardless of the risks of recession. The determination of the Fed has contributed to the decline of most global currencies. This increase in the dollar contributes to raising import prices and thus exacerbates the problem of inflation in most countries. In England, the new government’s euphoria for fiscal policy tied to sweeping tax cuts led to the collapse of the pound and soaring government bonds. The central bank then tried to control the chaos generated. In China, the central bank has openly supported its currency. At the same time, it continues to stimulate a moribund economy entangled in its repeated lockdowns and fears of an explosion in its real estate sector.

Market Overview - October 2022

Market Overview - October 2022 Survol des marchés - Octobre 2022