6 January, 2021 by Administrator
Equities Global equity markets rose 2.4%...
1 December, 2020 by Administrator
Equities Global equity markets rose...
3 November, 2020 by Administrator
Equities Global equity markets fell 2.3%...
2 October, 2020 by Administrator
Equities Global equity markets fell 1.3%...
LCP Investment Summary January 2019
Posted on 4 February, 2019 by Administrator
Global equity markets rose sharply in January, up 7.4% (in € terms), recovering some of the heavy losses seen in Q4 ’18.
Following a bruising December, investors looked to the positives of generally solid, if slowing, global economic data (World Bank 2019 estimates GDP growth down to 2.9% from 3.0%) despite the various risks that still remain. The mood was generally upbeat on the U.S./China trade war, and with China’s economy slowing and President Trump always mindful of the direction of equity markets, investors are optimistic that some sort of mutually beneficial deal can be negotiated that can save face for both countries.
Eurozone equities had their best month in over three years despite sluggish economic data, political problems and ongoing trade issues. The ECB said that they will keep interest rates at their present levels throughout the summer of 2019 and ‘longer, if necessary’. The U.S. Federal Reserve issued an investor friendly statement on both future interest rate rises and the pace of reducing its balance sheet.
Investors were further encouraged by better-than-expected earnings from index heavyweights like GE and Facebook.
Longer-dated Eurozone bond prices rose 2.3% in January, with the yield on the AAA Eurozone 15+ Year Index falling to 0.63% by month-end. The Euro Broad Sovereign 10+ Year Index rose by 2.2% with its yield falling to 1.55%. Despite the sharp recovery in equity markets, longer-dated bond prices continued to rise (and yields fall) following the release of soft economic data which saw Italy slipping into recession. The statements from both the ECB and the U.S. Federal Reserve on the timing of future interest rate rises also saw yields falling.
Sample DC Schemes
Our three sample DC Strategies all rose in January as most asset classes were higher over the month.