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Improved sentiment!

Despite the ongoing conflict in Iran and increasing AI-related turbulence, sentiment has improved among both companies and financial markets. Purchasing Managers’ Indices (PMIs) rose across both Europe and Sweden in July, despite fuel prices moving higher again. Equity markets responded positively, with the Stockholm Stock Exchange reaching a new all-time high. We are not surprised and believe markets are behaving rationally. We remain in a late-cycle expansion that is likely to benefit small and mid-sized companies in particular. The earnings season has been strong so far, and it will be interesting to review the quarterly reports from high yield issuers. Most companies are reporting during August.

Read Vinga Corporate Bond´s monthly report here

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