The positive sentiment in July and halfway into August ended in the middle of the month as markets turned negative. Above all, there were several indications from the world’s central banks that further interest rate increases are to be expected. The head of the US central bank said that continued monetary policy tightening will be painful for companies and individuals, but that they are necessary to avoid the situation becoming even worse in the future. Rising gas prices are also worrying ahead of the autumn. At present, there is a risk that the lack of energy will lead to interruptions in the energy supply with a negative impact as a result. Despite the challenging situation, companies witness strong demand while unemployment remains low – if that trend continues, a recession should be relatively mild. Sharply rising energy, food and mortgage costs are already cooling the economy at a rapid pace. Reduced demand could lead to softer inflation numbers and that some of the communicated interest rate hikes do not occur – something the stock market would appreciate.