18 September 2023
Central banks globally are set to announce rate decisions, with many still in the rate-hiking phase. The full impact of these hikes on markets and the economy hasn’t been felt yet. The Global Financial Tightness Indicator (GFTI) suggests a potential decline in US manufacturing, which heavily influences global stock markets. Although stricter monetary policies might challenge risk assets in the medium term, the current excess liquidity remains supportive of stocks in the short term.