By root
If you were to observe Earth from space, you might be astounded by the hypocrisy of our environmental claims. Despite global pledges to reduce emissions, coal consumption continues to rise, driven primarily by Asian economies, especially China. Many of the Chinese products we purchase in Europe, including electric vehicles, carry a significant environmental footprint. While … Continued
By root
Time to look at the CNN Fear & Greed Index to get an impression on market sentiment on the US market. The gauge shows fear compared to extreme greed only one year ago. While not a perfect indicator, it shows that many market participants do not fully trust the current calm and an S&P 500 … Continued
By root
Over the last 2 decades, Europe has been dwarfed economically and financially as its economic weight in world GDP has decreased from 35% to 25% and its global stock market weight has halved from 30% to 15%. On the one hand, the rest of the world has developed much faster than the Old Continent in … Continued
By root
This year, the performance of US stocks has been driven by an unusually small number of stocks as only 30% of the S&P 500 have outperformed the index year-to-date. Remarkably, this is the second consecutive year with such a low percentage. This 2 years pattern has previously been seen only during the Internet bubble. Historically, … Continued
By root
Last week, French stocks dropped 6.2%, erasing all their gains for the year. Meanwhile, the US ‘Magnificent 7’ stocks surged 4.8%, achieving five consecutive all-time highs. President Emmanuel Macron’s announcement to dissolve the National Assembly, following a significant defeat in the European elections, widened the OAT-Bund spread. This political turmoil stems from France’s high twin … Continued
By root
As Tesla shareholders approved Elon Musk’s $56 billion compensation package yesterday, our attention turns to the primary concern of the average US consumer, which will drive the US economy forward. Inflation of everyday goods remains the top worry, cited by 84% of respondents in a large survey conducted at the beginning of May. This is … Continued
By root
The headline US CPI for May came in lower than expected at a stunning 0% month-on-month. While inflation remains above the Fed’s 2% target, the trend toward slower inflation has resumed. The Fed nevertheless maintained its policy rate at 5.25-5.5%, a 23-year high. The median projection from its dot plot now shows only one rate … Continued
By root
To catch up with rivals in the booming AI market, Apple unveiled its new AI platform at the company’s Worldwide Developers Conference on Monday. This announcement led to a 7.26% surge in its share price, adding over 200 billion USD to its market value in a single day—equivalent to four times the market value of … Continued
By root
In late December last year, financial markets anticipated 6-7 interest rate cuts by the Federal Reserve in 2024. US Fed Funds futures projected a drop in interest rates from 5.33% to 3.83% for the year. However, half a year later, these expectations have shifted dramatically. The market now predicts only 1-2 cuts, with the Fed … Continued
By root
Writing from the small Grand-Duchy, a hub for many European institutions and acutely aware of the benefits we owe to the European Union in terms of wealth creation and peace post-WWII, I must express my concerns regarding the rise of the extreme right in the European elections across France, Germany, Belgium, Italy, and Austria. Financial … Continued