Viewing 1 post (of 1 total)
Viewing 1 post (of 1 total)
- You must be logged in to reply to this topic.
Home › Forums › ADR Racing (AU) › What should FintechZoom say about the impact of ECB policy on the investor behav
The European central bank monetary policies are influential in the sense that they determine the mood of investors. As the ECB sends an information about increasing interest rates to counter inflation, it is likely that the investors will migrate out of growth stocks, because the higher the discount rates, the lower the future earnings valuation. On the other hand, more accommodative policies would result to a boost in risk appetite which favors equities in the aggregate. Increase in bond yields linked with ECB actions also can drive investors to the less risky assets, slowing momentum in the stock market. FintechZoom points to the effects of policy announcements on industries, with sectors sensitive to rates, such as real estate, banking, consumer goods, generally responding most significantly to a change in direction.
Read us: https://accountinglads.com/fintechzoom-com-european-markets/