“The stock market summer thunderstorm could develop into a sustained storm”

Frankfurt Down to a low for the year, up to seven percent in the next few days, then down again: the leading European stock indices are bouncing back and forth as if disoriented by the increasing uncertainty as to whether war, the pandemic and central banks will drive Europe and the USA into a recession. Well-known asset managers warn of further setbacks. When it comes to stocks, they rely on companies with pricing power and stable margins. They are also cautiously backing some bonds and gold as the crisis currency.

“On the stock exchanges, it could not stay with a summer storm, but develop into a persistent storm,” Ann-Katrin Petersen, capital market strategist at the world’s largest fund provider Blackrock, outlines a gloomy picture in an interview with the Handelsblatt. The strong price fluctuations of up to 30 percent this year in leading indices such as the German Dax, the Euro Stoxx 50 and also the broad US index S&P 500 will continue in their opinion.