Daniel Antoniou: “A sharp correction in global markets will inevitably bring the local stock market lower”

07:17 - 07 August 2024

Economy Reporter

Daniel Antoniou the Executive Director of 7Q Financial Services Ltd considers that while a sharp correction in global markets will inevitably impact the local stock market, this impact will be manageable.

Speaking to CBN after being asked to comment on the recent global turmoil in the international markets and geopolitical developments in the region, Antoniou suggested that the factor involving geopolitical developments would be more significant.

“Global financial markets have benefited from central bank stimulus measures and abundant liquidity since the Great Financial Crisis of 2008,” Antoniou said, continuing, “The onset of inflation and record high global debt levels create a different setup, and it remains doubtful if Central Banks will continue to provide financial markets with the same levels of support and safety. The next recessionary cycle may need to be fought with higher rates and harder measures, and this is probably what is spooking markets, which are slowly catching up on this theme.”

He underlined, “For Cyprus, a sharp correction in global markets will inevitably bring the local stock market lower. However, the Cyprus stock market is not as interconnected with the real economy, as in other major economies, and the impact will be manageable.”

However, Antoniou was also careful to point out, “The geopolitical developments are far more important since our economy has heavily relied on foreign investments in real estate and tourism sectors, both which can be impacted significantly.”

Daniel Antoniou: “A sharp correction in global markets will inevitably bring the local stock market lower”

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