Middle East Crisis Stock Market Mood

The market divides experts: “Expect volatility in everything”

Experts are divided on the development in the markets after this weekend’s escalation between the US and Iran.

– I expect more volatility in everything; that is, oil, stocks and interest rates, von Euler & Partners’ investment manager Jon Arnell told EFN ahead of this week’s trading, but added that it is “a complex picture”.

KBC Securities’ head of equities Andrea Gabellone notes that the market’s euphoria is holding despite the Federal Reserve signaling higher interest rates in the US. According to him, this shows that the market continues to believe in the exceptional position of the American economy.

– This also means that the stock market rally will likely broaden to more parts of the market, he tells Bloomberg.

Interactive Brokers economist Jose Torres tells Reuters that the rising costs of AI investments have already caused investors to seek defensive stocks, which are less affected by economic fluctuations.

Lindt shares on track for worst quarter in 17 years

Swiss chocolate maker Lindt's strategy to pass on soaring cocoa prices to customers appears to have backfired, Bloomberg reports.

Last year, the company raised prices by 20 percent to compensate for rising world market prices. In March this year, Lindt was forced to lower sales forecasts when the Iran war was also predicted to affect packaging and shipping prices.

Since that profit warning, the stock has fallen 15 percent and is on track for its worst quarter since the aftermath of the 2009 financial crisis, the news agency writes.