Financial markets face rising interest rates

According to Morgan Stanley, public support fuelled the growth of financial markets during the health crisis. Now these are likely to be tightened by the monetary policies that are already being initiated by central banks around the world.

What will happen next after the interest rate hikes? Financial markets will have to learn to fend for themselves at the risk of The pandemic has caused an unprecedented freeze in economies, yet has barely made an impact on the markets. In the US, the S&P 500, the main stock market index, is currently at an all-time high, having risen 44% since January 2020.

Property prices are also soaring around the world. Commodities, oil and food products are also on the rise. This all-round boom is due to "unprecedented fiscal and monetary support", says Morgan Stanley.