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?
Technology stocks lead US stocks to new all-time high
On the stock markets, European shares and banks felt the pressure most, while US shares held up better and even reached new record levels thanks to the support of strong results from tech companies. In addition, concerns about European budget deficits led to a strengthening of the dollar against the euro. This was favourable for investments in US shares.
What happened in the world?
Expensive oil and high inflation keep interest rates high
The financial markets were mainly influenced by concerns about public finances this week. In Europe, much attention was focused on France, where the budgetary situation made investors more cautious. Higher oil prices and persistent inflationary pressures also kept long-term interest rates high. Towards the end of the week, however, the turmoil eased somewhat and rates fell slightly. This provided support for bonds, allowing them to rise in value.
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