Virtunen products

On Wednesday, the Fed will likely keep its policy rate unchanged at 3.75–4.00% and take a deep breath before the next rate hike. However, inflationary pressures have not eased, and the market expects interest rate hikes to continue in December.

Last week was a declining week on the European and US stock markets. The market is reassessing the returns on investment and massive funding requirements in the technology sector. The indices fell, and credit spreads widened. However, the belief that technology will continue to drive US economic growth found support.

European companies are expected to deliver a strong Q3. Earnings growth extends beyond the AI hype, as energy companies and the industrial sector have performed well.

The Nomination Committee has been busy recently. At the turn of September and October, the Board's self-evaluation was reviewed, and each member was interviewed individually. This was very interesting to me, as individual interviews were not conducted last year.

Last week was an unusual week in the European and US stock markets. US consumer, producer, and import prices rose faster than expected, but government bond yields still decreased.

Life in the Stock Market – Part 7 | Could the number of companies on the Helsinki stock exchange double?

Driven by gasoline, US consumer prices rose by 0.6% month-over-month in September, and the year-over-year pace accelerated to 3.7%. Price pressures have started to spread beyond energy prices, making the Fed's October rate decision tighter than before.

According to IMF estimates, nearly 2 BUSD in additional excess savings have accumulated in the global economy since 2023. That is one-third more than in the corresponding period before the 2008 financial crisis. This time, however, the savings are not flowing into U.S. government bonds, but into the AI boom.

Investments in AI infrastructure are keeping global economic growth at of around 3% despite the energy shock. However, IMF Managing Director Kristalina Georgieva warns that artificial intelligence is a "slow-moving tsunami" that will revolutionize the labor market, taxation, and education.

Last week was positive for the US stock market, whereas the Helsinki Stock Exchange saw a slight decline, and the Stoxx 600 index ended the week flat in Europe. US stock indices hit new records once again, while government bond rates rose to multi-decade highs in a growing number of developed economies.

The yield on France's 10-year government bond has been testing the 5% threshold for the first time since 2002. France, previously considered stable, is now paying more for its loans than former crisis countries Greece and Italy.

Eurozone households hold nearly 10 BEUR in cash and deposits, but 80% of them do not own shares or other investment instruments. Households shy away from risk even more than expected.

Almost as much crude oil is already passing through the Strait of Hormuz as before the Iran war. However, the flows of refined products, such as diesel, remain a fraction of normal, which is reflected in fuel prices here and elsewhere.

The weaker-than-expected employment report for September took the wind out of interest rate expectations. There is plenty of volatility, but the big picture of the labor market did not change substantially, however.

Following Inderes' listing, I received continuous negative feedback regarding the poor liquidity of the company's share.

Regarding inflation, the major eurozone economies are experiencing a true Indian summer, meaning a warm period in September-October.