(Finance) – “Since the last quarter of 2023, the bond and stock markets have begun to reflect expectations of significant cuts in interest rates, much higher than the intentions declared by central bankers. It is clear that in case these predictions are proven wrongthis is to be expected high volatility across the entire bond market curvea volatility that already last year was very high and even higher than that of the stock market.” He stated this Massimo Mociopresident of Assiom Forex, during the annual congress of the association of financial market operators, underway in Genoa.
“We are experiencing a phase in the financial markets that we have not seen for many years: navigating these turbulent markets requires great discipline, skill and experience. This expertise and experience is what we as Assiom Forex try to pass on every day to our younger colleagues – he explained – In this context, if the monetary restriction were to continue for an excessive time, it could compress aggregate demand too much and in this case , even the implementation of the necessary structural transformations, indispensable for robust and sustainable growth in the long term, could suffer a setback”.
Mocio also touched on the issue of the solidity of credit institutions, saying that “our banks are in a position to guarantee the necessary resources, so that this year, the supply of credit begins to grow again“.
The expert recalled that “in recent days a US regional bank – the NY Community Bancorp – has seen its stock market value halve after announcing the increase in provisions for possible losses from loans linked to the real estate sector. This bank and everything the lending sector to Commercial Real Estate continue to be observed specially Italian banks have proven more resilient and – allow me to say – better managed“.
“The Italian banking sector presents itself – therefore – resilient and well placed to help our country face the challenges we will have to face in the new year”, he added.
“If it is true that Italian banks are ready to commit to supporting this growth, it is even more so It is necessary that the regulatory and surveillance framework does not create further and heavier constraints to the financing activities of the real economy and operations on the capital markets”, underlined Mocio.
According to the president of Assiom Forex, “in order for Italian and European institutions to be able to face the new market and regulatory context, providing the necessary financing for the development of the European economy – we reiterate this strongly again this year – it is necessary to do important progress towards a real European “Single Capital Market”.“.