Global Market – Europe – Epicenter of next crisis?
This week, we will discuss Europe and which could become next major reason to worry for smooth economic recovery. EURO at parity with US Dollar, sharp depreciation of EURO could just be an early sign of big storm coming.
Double Whammy: High inflation & High interest rate
We have discussed “Double Whammy” on our 5-Mar-22 article, after Russia-Ukraine crisis and early days of talk of sanctions on Russia. It triggered energy prices rise to record high and triggered the inflation problem globally.
Why crisis in Europe is next biggest hurdle for global market?
We believe, problem in Europe is at initial stage and things could get worse before things could settle down. Why we believe so – let us discuss few points mentioned below.
• Inflation problem in Europe is more adverse compared to US.
• ECB & BOE are much behind the curve – in raising interest rate.
• Political crisis in UK & ITALY – more to come?
In next 3 – 6 months, we expect European crisis & Decoupling to be the next important factor to be discussed and driving the market.