Market Overview – October 2023

Central bankers’ predictions cause investors to lose confidence · 11 October 2023

By the end of September, most global central banks redefined their monetary policy. Most have decided to keep interest rates at their current level as inflation appears to be fading and economies are starting to slow. This decision seems logical and this pause in the rise in rates should have been well received by investors. However, some comments have shaken them. Indeed, most central banks have repeated the same message: “higher, longer”. Predictions that inflation will remain higher than expected and therefore interest rates could remain high for a long time have had a strongly negative impact across asset classes. Interest rates have resumed their rise. Ten-year rates in the United States have reached 4.60%, while in Germany they are closer to 3.5%. Stocks have undergone a correction.

Market Overview - October 2023

Market Overview - October 2023 Survol des marchés - Octobre 2023