Trading director at TDR Capital, Saif Kaddoura, said that global stock markets price that the economy is strong and resilient, and therefore a recession will not occur with the start of declining inflation numbers.
Kaddoura added in an interview with Al-Arabiya: “In our opinion, the monetary tightening cycles are nearing their end, not in the current month or next, but by the end of this year.”
He stated that the US Federal Reserve expects to increase interest rates by about 50 basis points maximum until the end of the year, and the European Central Bank has good inflation numbers and will try to raise interest rates by 25 basis points at each meeting to see the market’s response to these hikes.
Qadura expects US stocks to continue rising in the long run, with a price correction during the upward trajectory.
He pointed out that when the US Federal Reserve started the monetary tightening cycle last year, the US dollar rose to the level of 115 points on the dollar index, which affected the stock and commodity markets, and currently the dollar index is at 103 points, and this decline led to the recovery of markets, including stocks.
“The technology sector is one of the important sectors for TDR Capital, and the commodity sector, whether metals or energy, but in terms of stocks in particular, we are looking forward to the field of technology due to the revolution in artificial intelligence,” according to Kaddoura.
