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Inflation, rising rates: stock markets review their strategy

2022-02-06T09:55:58.099Z


Investors are more inclined towards stocks that are sensitive to economic conditions, such as industrials and banking.


On the stock market, the years follow each other but are not alike.

At the start of 2020, the priority was to revive the economy, hard hit by Covid-19 and repeated confinements.

Central banks and governments were on the move with plans on an unprecedented scale.

This horse treatment has worked well beyond expectations: economic growth has recovered with unexpected vigor.

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Driven by the recovery and by the floods of liquidity poured in by the central banks, inflation quickly got out of hand.

It reached 7% in the United States in 2021, according to the labor department, and 5.1% in Europe according to Eurostat.

For the markets, the return of this spiral of rising prices and wages is a real upheaval.

Central banks, led by the powerful US Fed, have started to reduce their ultra-generous monetary policies and are preparing to raise interest rates.

See also

Persistent inflation worries Germany

Bond markets, where debts are traded...

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Source: lefigaro

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