In recent weeks, the stock markets have remained in a positive mood. In July, indices in both the USA and parts of Europe reached new all-time highs. In the USA in particular, the trend was strongly driven by the growth prospects arising in connection with the development and implementation of artificial intelligence. In particular the technology sector could benefit. However, company reports, some of which failed to meet analysts’ expectations, also led to increased volatility recently.
Growth data in the US for the second quarter of the current year remained strong. In combination with strong labor market data and falling inflation rates, this makes a key interest rate cut in the US in the second half of the year likely. President Biden’s withdrawal from a new presidential candidacy in the fall will increase momentum in the election campaign in the second half of the year and have side effects on the market.
In Europe, the stock market levels remained high in July. However, they were less able to benefit from the technology boom described above. Economic momentum in this region lagged behind the USA.
In Asia, growth in China continued to be weak. The country’s import performance fell short of expectations. This also had an impact on other regions.
