Danger of explosion in oil prices due to the Middle East crisis: Skeptics warn of imminent interest rate hikes

Danger of explosion in oil prices due to the Middle East crisis: Skeptics warn of imminent interest rate hikes

According to a report by www.4investors.de,
The start of the year on the stock markets is difficult as almost all stock indices are in the red. The Middle East crisis and the threat of skyrocketing oil prices have led investors and asset managers to be skeptical about any timely interest rate steps. Interest rate cuts could therefore become more distant. This has implications for hopes of imminent interest rate cuts, which are fading due to rising consumer prices, the Middle East crisis and increasing protectionism. The lack of conviction among companies and investors about the future can lead to further uncertainty in the markets.

Investors' skepticism could lead to a further downward trend on the stock markets, as confidence in economic policy and international trouble spots is currently low. This could lead to a prolonged period of uncertainty and lower willingness to invest. A possible recession in Germany and the questionable development of international economic growth could lead to further market distortions.

Experience shows that lower interest rates alone do not have to bring about an upswing, especially if there is a lack of confidence in the future and investment opportunities. This could lead to a long-term stagnant period for the market as investors wait for clear signals and action from governments and central banks.