Now: The Markets Driven by Fears

The sentiment of fears is coming back to the market in which has renew the demand for the safe haven asset. The main reason for this sentiment is the current progress on the inflation and what come after, the recession. Consumers are expecting the inflation will keep climbing up and thus survey on the Consumer confidence show a huge drop on the figures.

Christine Lagarde, the president of the European Central Bank (ECB), spoke during the Central Banking Forum. In her speech she stated that ECB will hike the rate by 25-basis points this upcoming July meeting and at the same time they are ready to increase the pace of the tightening if needed. She added that the recession fear is unfounded as they are expecting the economic growth to continue for a while longer.