HSBC strategists said that the decline in stock valuations reflects the pressure brought about by soaring interest rates in the past few months; however, the weakening of market breadth is an inverse indicator, which usually means that the market is oversold. The team, led by Max Kettner, reiterated their bullish outlook on stocks, citing improved economic growth and profit expectations. They wrote in the research report: “It is unrealistic to say that interest rates have not had any impact on risky assets.” In the bank's risk asset short-term sentiment and position framework, there are no indicators to signal a sell. Despite this, given the uncertain prospects of the Middle East conflict, they maintained their highest and lowest allotment positions on sovereign bonds.

HSBC strategists said that the decline in stock valuations reflects the pressure brought about by soaring interest rates in the past few months; however, the weakening of market breadth is an inverse indicator, which usually means that the market is oversold. The team, led by Max Kettner, reiterated their bullish outlook on stocks, citing improved economic growth and profit expectations. They wrote in the research report: “It is unrealistic to say that interest rates have not had any impact on risky assets.” In the bank's risk asset short-term sentiment and position framework, there are no indicators to signal a sell. Despite this, given the uncertain prospects of the Middle East conflict, they maintained their highest and lowest allotment positions on sovereign bonds.