Macroeconomic factors vs market forces
Overall, October was a strong month for stock markets. This may seem strange, since news headlines were not of the uplifting kind. Instead, there were continued downgrades in economic growth forecasts, interest rate hikes and stubbornly high inflation. But offsetting these weighty macroeconomic factors are some more market-related forces that point in the opposite direction. We are sticking to our neutral view on the stock market.
Last week’s news headlines were dominated by the euro area, with a big interest rate hike and record inflation. This week will see more central bank policy announcements, with the US Federal Reserve as the focus of attention.
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