According to Jinshi, European stocks fell slightly on Friday, following the slight correction in the US stock market, and the comments of central bank officials dampened the optimism about the prospect of interest rate cuts. Isabel Schnabel, a member of the European Central Bank's executive board, warned against consecutive interest rate cuts in June and July, saying that inflation risks are still tilted to the upside and a cautious approach should be taken, which brought a sober tone to the market.
Earlier, three Fed officials suggested that interest rates should remain high for a longer period of time. Tatjana Puhan, head of asset allocation at Swiss Re, said that it is normal for sentiment to fluctuate around monetary policy expectations. Nevertheless, given that further rate hikes by the central bank are unlikely at present, "and we are still in a relatively favorable growth environment, it is still a good choice to invest in risky assets in the coming weeks, and there may be moderate upside potential," Puhan added.
