Mixed tech earnings stall market rally, Edmond de Rothschild says
SPY•Mixed technology earnings halted a market rebound, though third-quarter corporate earnings growth reached around 28% across the US and Europe. Edmond de Rothschild remains upbeat on equities but favors diversification beyond the US and artificial intelligence.
1. Market and investment outlook
Edmond de Rothschild said mixed technology earnings halted the market rebound, while third-quarter corporate earnings growth reached around 28% across the US and Europe. The firm favors geographic and thematic diversification beyond the US and artificial intelligence, and retains a slight overweight in duration despite some profit-taking.
2. Rates and credit
The Fed, ECB and Bank of Japan held rates steady, with investors largely pricing in December increases. Credit spreads tightened despite geopolitical risks, Xover narrowed 20 basis points and European high-yield bonds returned 0.34%.
