Berlin At the start of the year, the stock markets went up sharply. But now the leading German index has been stagnating for weeks – despite continued good economic indicators. The Ifo Institute’s economic index, which is important for Germany, rose for the fourth time in a row last week. However, share prices are hardly benefiting at the moment.
“The side effects of the better economy are worrying for the stock market,” warns stock analyst Ulf Sommer in the current episode of Handelsblatt Today. “Rising prices lead to higher interest rates to curb inflation. And rising interest rates, in turn, result in higher credit and financing costs,” explains Sommer. First of all, it does not affect prices at all when interest rates rise. In view of the expected economic upswing, however, the central banks should have no reason to end their interest rate hikes quickly.
Also: The Mobile World Congress, the most important trade fair for the mobile communications industry, begins in Barcelona. Technology reporter Christof Kerkmann talks about the biggest trends in the mobile communications industry in the podcast.
More: The unpleasant side effects of good economic data
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