New COVID variants now tops the list of concerns for financial markets, followed by inflation and economic growth, according to Deutsche Bank’s monthly market sentiment survey for July published on Monday.
A surging Delta variant of the coronavirus has rattled markets in recent weeks, fuelling concerns that world economic growth may have peaked.
In a Deutsche Bank survey conducted July 21-23 covering around 550 market professionals globally, over 60% of respondents said they viewed new variants as more worrisome than they did back in April when it was last the top risk.
Inflation fears were in second place, followed by growth concerns. A majority of respondents in the July survey said they viewed a pick up inflation as transitory, similar to views held in May and June.
A slight majority of readers, 51%, said they expected inflation in Europe to averaged between 1% and 2% over the next 5 years and not exceed its target.