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The CS-CFA indicator, released on Wednesday, rose only slightly to -32.2 points in May from -33.3 points earlier in May. In March, the index decreased to -41.3 points due to the turbulence in the banking sector.
With the minus in May, Swiss financial analysts’ mood barometer has been below zero for the fifteenth consecutive month, thus pointing to more than a year of economic downturn. According to experts, economic prospects for the USA and Europe also remained more or less stable. Analysts only looked significantly more pessimistic for China.
However, given the current economic situation, respondents are much more optimistic. Here, the corresponding indicator rose by 12.1 to 32.1 points, thus improving for the third consecutive month. The robustness of the global economy is therefore also an advantage for the Swiss economy. After all, economic data since the beginning of the year have generally provided positive surprises, according to CS economists.
Meanwhile, high interest rates are slowly leaving their mark. Real estate valuations are too high given the rise in interest rates and the resulting lower earnings expectations, according to analysts surveyed. This applies to both residential real estate and real estate funds. Meanwhile, the majority see other asset classes such as stocks or gold as highly valuable.
The relatively stable economic situation has an impact on interest rate expectations. According to CS, almost a quarter of those polled in April still expect the US Federal Reserve to cut interest rates by the fall, which is the case now, according to CS. Analysts forecast further rate hikes for Switzerland and the eurozone.
Meanwhile, inflation expectations have changed little. The common view of the USA is that inflation will decrease. While the majority expect this for Switzerland and the euro area, about a third of respondents still expect inflation to remain at a very high level.
(SDA)
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
