Selfdriving cars, the diappointing Uber revolution, the battery renaissance and the Werthstein Zeitgeists – Giles Keating, Chairman of the Werthstein Institute, interviewed on CNBC.
A rise in interest rates is poison for stocks, because it increases the attractiveness of bonds relative to equities, whose dividend is uncertain. According to theory! But are interest rates really going to be rising in the near future?
The US Fed has already begun, if only hesitantly. But then at the end of June, there were a few surprise smoke signals from the European Central Bank. President Mario Draghi hinted at a change in monetary policy. Perhaps it was just a test balloon, but the stock markets woke up from their summer lethargy. The German DAX lost almost 500 points in a few days, its rally coming to an abrupt end. Larger correction or small dent, what do the experts from the Werthstein Institute think?
The German DAX has had one of the worst weeks for a long time and is now trading 500 points from its all time high. Is this the beginning of a healthy correction or does the rally on the stock exchanges continue in the summer? Stefan Riße approaches the answer in his report from the Frankfurt Stock Exchange
British Prime Minister Theresa May had imagined things differently. She wanted to get support from the British public for the negotiations on leaving the European Union. Now she has got the yellow card, and has to work with partners. This makes governing more difficult, and complicates the Brexit process.
The British pound has fallen, while the stock markets are still relatively calm in response to the election. Investors are now focussing on the meeting of the US Federal Reserve next Wednesday. A rise in interest rates seems to be a done deal, but will Fed Chairman Janet Yellen increase the pace of tapering? And how dangerous is the new crisis in the Middle East for the financial markets?
Despite political uncertainties, stock markets seem calm. But while there are new all-time highs on Wall Street and DAX, the markets have lost momentum. The Werthstein index continues to rise, but caution is still required. Click here for the video!