UBS On-Air: Market Moves Viewpoints with Burkhard Varnholt - A global markets podcast (Ep. 37)
Jun 12, 2025
Burkhard Varnholt, an expert in global markets, dives into the recovery of U.S. equities, emphasizing key factors fueling this rebound. He compares the economic landscapes of Europe and the U.S., challenging the notion of European markets having an advantage due to lower rates. Additionally, Varnholt discusses the stellar performance of South Korea’s KOSPI-Index, attributing it to recent leadership changes and promising policies aimed at innovation. His insights provide a fascinating glance at shifting global market dynamics.
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US Market Recovery Driver
- The US stock market recovery was driven by focusing on bullish hard data over bearish soft data.
- Resilient GDP, labor market, and high earnings support a "Roaring 20" scenario with global productivity growth.
Europe's Rate Cuts Not Advantage
- Europe's rate cuts are offset by strong currencies acting like monetary tightening.
- Differences in rate impact limit any unfair advantage of Europe over the US market.
South Korea's Market Transformation
- South Korea's new president aims to improve governance and upgrade market status to developed.
- Market reclassification historically leads to 2-3 years of stock market uplift through capital inflows.