Interest Rates

Global markets plunged as rising inflation and interest rate fears collided with soaring artificial intelligence infrastructure costs, wiping out billions in market value across Seoul, Wall Street, and Tokyo.

Julius Baer's weekly review covers Democratic momentum in US midterm prediction markets, robust Wall Street earnings growth, and the ongoing AI pricing war testing business models.

The Q3 2026 earnings season for major U.S. banks begins this week, shedding light on high interest rates, consumer health, and credit risks.

Meitav Investment House warns that strong US consumer data is temporary, driven by a narrowing group of AI stocks while the bond market faces severe risk.

U.S. 10-year Treasury yields have surged rapidly past 5.2%, prompting warnings from 22V Research that historical spikes often precede major financial crises.

Israeli real estate and construction stocks faced severe declines in July despite falling interest rates. Market uncertainty amid regional tensions and rising financing costs wiped out hundreds of millions of shekels in market value for major developers.

The US housing market faces renewed pressure as 30-year mortgage rates rise to 7.03%, subduing sales volumes while home prices remain surprisingly resilient at a median of $429,100.

New York Fed President John Williams signaled no rush for a rate hike, sharply lowering market expectations for the October 28 Federal Reserve meeting.

Global debt crossed $365 trillion after rising $10 trillion in the first half of the year, driven by soaring borrowing costs and large government deficits across major economies, according to the Institute of International Finance.

US bond yields are testing new highs, prompting analysts to debate whether a 6% yield on 10-year Treasuries is becoming the new normal for global financial markets.

Market experts analyze US Treasury yields surpassing 5%, examining shifting fiscal credibility, SpaceX's evolution into an infrastructure platform, and crypto regulations.

A Julius Baer economic review highlights that anticipated interest rate hikes matter less to markets than forward guidance and inflation projections.

Global markets await critical central bank rate decisions as US Treasury yields hover near multi-year highs and oil prices fluctuate. Meanwhile, Wells Fargo cuts its year-end S&P 500 target.

US 10-year Treasury yields have surpassed 5% for the first time since 2007, driven by inflation fears, massive debt issuance, and surging oil prices above $100 per barrel, signaling a prolonged era of expensive global capital.

Meitav's weekly review highlights Israel's moderate inflation, complex budget deficit, and dormant housing market, while warning of U.S. monetary tightening risks and high household equity exposure.

U.S. 10-year Treasury yields nearing 5% threaten global stock markets, raising financing costs for AI infrastructure and testing growth stock valuations amid inflation fears.

The Israeli mutual fund industry reached a record NIS 853 billion in assets under management. Driven by market rallies and high interest rates, money market funds surged by 914% over the past five and a half years.

US President Donald Trump has renewed pressure on the Federal Reserve to lower interest rates. He threatened to halt trade with countries that have a trade deficit with the US if the central bank does not comply.

The Japanese currency is strengthening sharply as statements from the Bank of Japan and American support increase market bets on a shift in monetary policy.

Foreign exchange markets are showing slight movement ahead of Fed Chair Kevin Warsh's speech in Jackson Hole. The dollar is trading above 2.96 shekels, up 0.1%.

Three Federal Reserve officials expressed ongoing concern today about the state of inflation in the US, as the annual Kansas City Fed economic symposium opened in Jackson Hole, Wyoming. They emphasized the need for action to return inflation to the 2% target.

Deutsche Bank economists warn of a dangerous combination of a jump in bond yields to 5.3%, high oil prices, and uncertainty surrounding new sanctions, which threatens risk assets and inflation.

For nearly two decades, developed nations have grown accustomed to markets ignoring rising sovereign debt. However, a recent sharp sell-off in long-term government bonds suggests this era of complacency may be ending.

The local reporting season is entering the final stretch, with Mizrahi Tefahot closing the bank cycle. Against a backdrop of moderate inflation, forecasts for the coming months are worrying, and all eyes are on Nvidia next week.

The Israeli banking sector is entering a new macroeconomic environment where falling interest rates and moderating inflation make profit generation more challenging, yet major banks continue to report strong financial results.

The Consumer Price Index for July will be released tomorrow at 14:00. While economists expect a moderate rise, they warn of inflationary pressures in the coming months that could impact the Bank of Israel's interest rate policy.

Following a strong earnings season that boosted global indices, new US inflation data could reshape the Federal Reserve's interest rate path. A Deutsche Bank review.

Four life insurance giants in Tokyo are stuck with massive losses on government bonds following interest rate hikes. Now, as the yen plunges to record lows and the Americans scramble to calm the currency market, the local complication is becoming a dramatic test for the global economy.

The decision to leave the interest rate unchanged turned out to be only temporary, as the fear of disruptions in energy routes and the rise in oil prices are shuffling the cards for central banks. Ofer Klein analyzes the market situation.

The combination of the war against Iran and stubborn inflation is driving a dramatic policy shift in Europe, the United States, and Japan. Julius Baer provides a special analysis on the expected impact on equity and FX markets.

A surge in oil prices and inflation fears are pushing bond yields upward, but unusually, the spreads between government and corporate bond yields are not widening sharply. We explore the drivers of this equation, the opportunities it presents, and how to start investing.

Credit cards are often seen as a tool for expense control, but the "fixed charge" feature hides an expensive revolving credit. Here is why installments and deferred payments are economically disadvantageous.

Four out of seven tech giants are expected to report this week, as markets wait to see if massive investments in artificial intelligence will continue to fuel profits or lead to a painful shake-up in stocks.

The Swiss bank estimates that Europe will continue to face inflation and energy pressures, but identifies potential in stocks and bonds, and estimates that Trump's tariffs will not lead to another sharp spike in the cost of living.