Read our market review and find out all about our theme of the week in MyStratWeekly with our experts Axel Botte, Aline Goupil-Raguénès and Zouhoure Bousbih.
Axel Botte's presentation
Download the slides (in French only)Topic of the week: The commercial real estate crisis in the Eurozone and financial risk
- The price of commercial real estate in the Eurozone has dropped significantly due to the sharp increase in interest rates;
- Structural factors are also at play with the teleworking, online commerce, and the demand for buildings with better energy efficiency;
- The outlook, while slightly improving, remains degraded;
- For the ECB, commercial real estate represents one of the most significant risks to financial stability in the Eurozone;
- Its focus is on real estate investment funds, which represent 40% of the commercial real estate market;
- In the event of market stress and significant investor redemption requests, open-ended real estate investment funds (80% of the funds) are exposed to a liquidity risk that could pose a systemic risk to the commercial real estate market and impact the financial stability of the Eurozone.
Market review: Beyond appearances
- Fed rules out a rate hike and will slow the pace of QT;
- Job growth and wages moderating in the US;
- T-note yields dip below 4.50%;
- BoJ intervenes in markets to stem yen weakness
Figure of the week
9
It’s, in trillions of yen, the estimated amount of the BoJ's interventions last week (unconfirmed by it) to try to stem the yen's decline (5.5 trillion yen on April 29th and 3.5 trillion yen on May 1st).
MyStratWeekly : Market views and strategy
Download MyStratWeekly – May 7th 2024
Reading time : 15 min.
Podcast
Reading time : 30 min.
Reading time : 5 min.