More headwinds for investors?
A year ago, around 'Liberation Day', one word was enough to make markets nervous: trade tariffs. Today, that word crops up again. This time, Trump is threatening again. Sometimes even with an extra 50%. Is this another headline? Or could this become real policy, with even more headwinds for investors? Mark Van Assche, account manager Private Banking and Wealth Office, talks about it with Mailee Hovsepian, customer relationship manager at KBC Asset Management.
30/04/2026
How are investors reacting?
Strong earnings growth at Financial and Technology shares
- The results season remains strong, with especially robust earnings growth for Financials and Technology.
- Uncertainty about the duration and intensity of the conflict in the Middle East is weighing on investor sentiment. The hope is that positive (but slightly slower) growth can soon resume, with substantial investment in AI fuelling earnings growth.
- Investors are wondering how high energy prices will climb in the wake of the Iran conflict. Expensive energy prices eventually trickle down into inflation, which explains the gradual rise in the market rate for bonds.
- The war with Iran has caused increasing volatility on the stock markets in recent weeks, but overall, the reaction has been better than expected.
What happened in the world?
Risks remain despite hopes for a quick end to the conflict in Iran
- Although a temporary ceasefire has been declared, the war with Iran continues to pose a significant risk to the global economy if energy supplies remain disrupted for a longer period of time.
- The rising price of crude oil means that slower growth is expected for both the US and European economies. Crude oil prices are tied to the latest news on the conflict.
- In the US, the ‘Big Beautiful Bill’ should provide a limited boost to growth. In the euro area, the investments announced for defence and infrastructure are gradually taking more concrete shape. China continues to regularly support its flagging economy.
- The ECB and the Fed are holding their key rates steady for the time being. A key rate cut in 2026 is no longer in line with expectations.
- In recent months, concerns have surfaced about private loans from lenders other than the traditional banks. While this does weigh on sentiment, larger banks should not be too strongly impacted.
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