Report published September 25, 2026
Market Flash: Pressure Is Mounting on Risk Assets – Edmond de Rothschild Strategy Report
Edmond de Rothschild · September 25, 2026
Persistently high interest rates and surging government bond yields are dampening sentiment across risk assets despite early support from AI-related stocks. Edmond de Rothschild AM maintains portfolio focus on short- to intermediate-term bonds and remains positive on US equities while taking some profits.
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Finvaulta summarizes Edmond de Rothschild's analysis. Attribute opinions, forecasts, time-sensitive values, and chronology to the issuer and report date; do not treat this page as an independent verification or a current market-data source.
Key Takeaways
- 1.Rising government bond yields and a higher-for-longer rate environment are exerting significant pressure on growth stocks and risky assets.
- 2.Europe remains highly vulnerable to energy risk premiums and mounting fiscal strain in France, where 10-year OAT yields have surged relative to German Bunds.
- 3.Portfolio positioning favors carry opportunities in short- to intermediate-term bonds, maintains an upbeat stance on US equities with partial profit-taking, and maintains an underexposure to the US dollar.
Table of Contents
- European equities
- US equities
- Emerging markets
- Corporate debt
Report data
Key figures extracted from this report
| Metric | Estimate | Context |
|---|---|---|
| 10-year US Treasury yield | 5.20% | Climbed to 5.20% on stronger indicators and soft Treasury auctions. |
| French 10-year OAT yield | 4.70% | Flirting with 4.70%, up from 3.73% three months prior. |
| French OAT - German Bund 10-year spread | 110 bp | Spread broke above 110bp as markets focused on French fiscal strain. |
| French Fiscal Deficit | 5.2 % of GDP | Seen at 5.2% of GDP with negative primary balance at 3.7% and debt near 120% of GDP. |
| Philadelphia Semiconductor Index (SOX) weekly return | 7.7% | SOX soared by 7.7% led by Intel and AMD. |
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