"Now it is the stocks that manage data centres that are to be followed"
"Among these to be noted are Schneider Electric and Johnson Controls. Relx, on the other hand, is interesting among professional services companies."
3' min read
Key points
- The US elections are just around the corner. What scenarios can be expected for the stock markets?
- In global equities, we have seen the collapse of US tech stocks followed by a broadening recovery or the recent rally in Chinese stock markets aided by government stimulus measures. What is your view and what is the outlook between now and 2025?
- The most interesting titles?
3' min read
On the corporate side, clarity in balance sheets and solid business are the two main characteristics to evaluate in the equity segment, while on the macro side, the easing of central banks will give a boost to GDP. Bettina Baur, senior portfolio manager at Union Bancaire Privée, starts from these convictions.
How will the Fed's and ECB's easing of monetary policies translate in the markets?
Monetary easing should stimulate lending and investment, supporting economic growth. This environment, combined with still resilient labour markets, should be more favourable to consumption, which continues to drive GDP growth in most developed economies.
Does the US see a soft landing possible?
A soft landing in the US is increasingly likely, as the Fed's efforts aim to balance slowing inflation with supporting growth. However, policy calibration is needed.
The US elections are just around the corner. What scenarios can be expected for stock markets?
A Republican victory is expected to lead to deregulation and tax cuts, which have traditionally favoured sectors such as energy and finance. A Democratic victory could shift the focus to infrastructure and renewable energy, while fears of higher corporate taxes and regulatory tightening could impact the technology and financial sectors.
And on emerging markets and Europe?
Emerging markets could benefit from a weaker dollar that would improve export competitiveness and ease dollar-denominated debt burdens. Changes in US trade policies and regulatory differences are two of the main risks affecting European and emerging markets. Although they would potentially be more pronounced with a Republican administration, we do not expect a Democratic government to deviate substantially from its current policies.
