FEDThe aggressive interest rate hikes of ‘s slowdown in economic activity brought recession risks to the fore in the USA.
Interest rate hikes, inflation and recession Investors trying to find the direction of the markets in the triangle also had a difficult time.
What is Recession?
recessionIn macroeconomics, real gross domestic product (GDP) has traditionally shown negative growth for two or more quarterly periods in a row. It can also be called a recession in the economy.
Based on this technical definition, when we look at the last two growth figures in the USA We see that the conditions for a recession are formed in the USA.
Although the White House and US Treasury Secretary Janet Yellen stated that this definition is a shallow definition and that the US is in recession is not supported by other data, economists underline that the risks related to economic activity have increased.
European Recession Not Priced
The last comment on this issue came from Goldman Sachs analysts. According to the news of BloombergHT; Stating that the recession is not currently priced in Europe, Goldman strategists stated that the stock markets approached the issue very optimistically.
Analysts including European expert Sharon Bell Stoxx 600 They stated that they expect a 10% retracement from the current level in their 3-month price forecasts for In the background of this forecast, the recession has not yet been priced in, the weakness in growth, the political risks in Italy and the difficulties in Russian gas supply are shown.
Stoxx 600 It is a stock index covering 90% of European stocks.