Natixis IM Warns of Key Market Risks Amid Persistent Inflation and Fed Uncertainty
Mabrouk Chetouane, head of market strategy at Natixis Investment Managers, highlights mounting risks for global markets despite recent recoveries in US and European equities. Persistent US inflation clouds the Federal Reserve's rate-cut trajectory, while questions linger over leadership continuity at the central bank.
Currency wars emerge as a critical threat, with potential to trigger capital outflows, spike hedging costs, and amplify volatility. Chetouane's team employs Markov techniques to model these uncertainties, incorporating monetary policy variables into adaptive investment frameworks.
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