STOCK MARKET REPORT by CEO Silvano Grimaldi of the independent asset management company GRIMALDI & PARTNERS Ltd.
STOCK MARKET REPORT by CEO Silvano Grimaldi of the independent asset management company GRIMALDI & PARTNERS AG
The international stock markets ended the month of MAY with losses.
- Fear of recession, inflation and rising interest rates continue to shape the picture.
- Fears of aggressive interest rate hikes by the US Federal Reserve.
- Concerns about a global growth dip or a "hard landing".
- Extreme levels of pessimism " due to high inflation, rising interest rates, supply chain problems and geopolitical crises.
EQUITIES IN FOCUS
The billion-dollar contract for the train division makes SIEMENS popular
The largest order in the company's history gave Siemens shares a real boost. The train division of Siemens has landed an order worth more than eight billion euros with the construction of the sixth largest high-speed system in the world in Egypt. According to the group, the railway system will connect 60 cities over a distance of around 2000 kilometers, including the archaeological sites in Luxor with Hurghada on the Red Sea. "Such a good order situation should also pay off in the long term in the share price," said Jürgen Molnar, capital market strategist at RoboMarkets. A trader also stated: "The order obviously provides the decisive positive impetus for the Siemens share to break out after a long dry spell."
As long as inflation persists, interest rate concerns are likely to continue to plague investors. The prospects for the financial markets, at least for this year, are not as bad as they seem at the moment. In addition, the reporting season has gone well so far. The US labor market remains very robust despite inflation and the tightening of monetary policy. In addition, despite everything, the US Federal Reserve is not as aggressive as many market participants believed.
The recent very poor mood on the stock markets and the panic selling speak in favor of a positive price reaction. Only minor tones could be heard and doomsday scenarios were presented. Such phases often signal a very strong oversold situation in the financial markets.
We expect stabilization in June.
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