9 July 2018
What's new in the financial markets?
Chief Investment Officer ING Belgium
Thierry Masset, Chief Investment Officer reviews the economic and financial news. Every month, he analyses events that have impacted the financial markets. The context of any potential stock market fluctuations is equally scrutinized. You can find this market analysis and ING's investment strategy by consulting our "Monthly Market Review".
So what are the key points this month?
- The uncertainty created by ongoing trade negotiations is bad for business as the contagion effect of this uncertainty could be a more cautious approach to capital spending and business investment….
- … but the market is able to shrug off trade or political headlines and volatility as long as corporate earnings stay strong and interest rates don’t get too high.
- We see much better potential in smaller companies that do business mostly in their home markets and are therefore less exposed to the geopolitical and trade risks pressuring others that rely more heavily on overseas markets.
"Even if stocks’ absolute returns are going to be more challenged, we expect the second-longest bull market in history to continue for at least another year, propelled by strong earnings growth and a fiscal stimulus package that should help offset rising interest rates."