Interest rates are back. Will that change your plans?
Bonds are once again offering higher returns. But does that mean their role has changed? And does the traditional combination of equities and bonds still work the way it used to? Mailee Hovsepian and Heng-Ta Quach, Customer Relationship Managers at KBC Asset Management, discuss the impact of rising interest rates on financial markets and on a diversified investment portfolio.
22-09-2026
How are investors reacting?
Stock markets are losing ground
Equity markets initially reacted positively, but technology stocks soon came under pressure again and continued their correction of the past few weeks. Investors feared that the Democrats would introduce stricter rules for artificial intelligence and, among other things, delay the development of infrastructure. As a result, profit-taking took place. This weighed not only on technology companies, but also, for example, on suppliers of energy and infrastructure for data centers.
What happened in the world?
Interest rates fall after US midterm elections
The results of the US midterm elections pointed to Democratic control over the US Congress. This gave investors clarity and also dampened concerns about US government finances. At the same time, fears of a further escalation in the Middle East diminished, and the oil price fell sharply. The combination had a reassuring effect and pushed down global market interest rates.
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