Macro Strategy Views podcast: The stock market rout to fade despite looming Italy-EU clash

In our weekly podcast Macro Strategy Views, we focus on topical macro and market themes targeting investors and trading corporates. Today, we focus on the stock market rout. Thomas Harr, Global Head of FI&C Research, chairs today’s podcast and our Chief Equity Strategist Mattias Sundling joins him. Italian debt worries and rising US interest rates have driven the sell-off. We expect the former to stay with us for a while, with the latter fading in importance. We believe equity markets will continue to be choppy over the next couple of weeks but we do not expect a sharp new downturn. The next recession in the US and Germany is too far away and we believe looming shocks, such as Italian debt worries and a trade war, are not devastating enough for this correction to be the beginning of a bear market.