Market Comment

Markets gaining profits

The stock markets reached new highs in many regions in March. This applied, for example, to the American S&P 500 Index as well as the Nikkei 225 in Japan. It took the latter thirty-four years to regain its previous high. This development was supported by good corporate figures. The focus remained on the topic of artificial intelligence. Companies that provide the technical infrastructure for and those that benefit from the implementation of artificial intelligence were able to meet market expectations. In terms of economic development, the picture varied from region to region. While there are still signs that the US economy is performing better than expected last year, the situation in Europe remains tense. Strong American growth will also be positive for global economic development. Geopolitical tensions such as the conflict in the Middle East have so far had no impact on the stock markets. On the interest rate side, it is becoming apparent that key interest rate cuts by the respective central banks in the USA and Europe have been postponed until the middle of the year. This is due to the persistently high inflation rates in both regions. However, the pressure to act is currently greater in Europe due to the poor economic development.