Kathrein Market Perspective April 2023

The second quarter got off to an extremely positive start, with both bonds and equities making strong gains. The positive sentiment was due to good economic data, but also to investors' new risk budgets. However, difficulties arose at Silicon Valley Bank in the USA at the beginning of March in the first quarter. This turbulence also had an impact in Europe, Crédit Suisse therefore had to be taken over by UBS after heavy losses. These events sent shock waves through the capital markets.

In the end, however, the stock markets recovered and the quarter has been very positive for many equity investors overall so far. The global economy is expected to grow below its long-term average of 3.3% in 2023. Forecasts suggest that inflation will remain higher than expected for the time being. Key interest rates in the US and Europe could peak as early as this summer. Based on the current economic situation, we expect the euro to have further appreciation potential in the second half of the year and not to see the lows of 2022.

Despite the turbulence in the first quarter and the uncertain future, confidence among investors remains. The positive forecasts for the global economy and currencies inspire optimism and show that the financial markets will recover. However, it remains to be seen what challenges and turbulence we will face in the coming quarters.

Disclaimer

This information is intended to provide a general overview of current market data and Kathrein's market opinion and investment strategy and does not contain any direct or indirect recommendation for a specific investment strategy in the sense of a financial analysis. When investing in securities, price fluctuations due to market changes are possible at any time.