Global Financial Markets

The war in Iran is putting pressure on energy prices, inflation expectations, and central banks. Will the Strait of Hormuz remain open? Should we expect interest rate hikes rather than cuts? And what does this mean for the S&P 500, government bonds, and EUR/USD? This report outlines the market impact of the Iran war in an environment of ongoing uncertainty.

The risks for financial markets continue to mount, with considerable uncertainty surrounding trade policy (with possibly even a currency war), the macroeconomic impact of AI, and geopolitics (including Iran). How do we see these three risks playing out, and what will be the consequences for the markets?
 

Markets seem to be discounting the scenario that the Fed will continue to stimulate growth with lower interest rates, while wage increases and inflation remain limited. We have serious doubts about this.