A bad cocktail for the mood [Video]

Ipek Ozkardeskaya Swissquote Bank Ltd

We now have a new Covid variant that’s ‘very’ different from the ones we knew so far, a rising inflation, and a market bubble.

So inevitably, the market mood is souring, as investors don’t know whether the equities could survive to another economic hit with less support from the central banks, as central banks would have to deal with a dual fight that’s intensifying on both fronts: inflation is rising, and Covid news are getting worrisome. The problem is that they can’t use the same tools to fight back inflation and the economic slowdown. And the choice will be difficult.

We are having a rough day in Europe, but the US futures are also falling at a decent speed.

The only encouraging news is the easing oil prices, which could tame the inflationary pressures and give more time to the central banks before pulling back support.

Author

Ipek Ozkardeskaya

Swissquote Bank Ltd

Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.

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