3 September, 2019 by Administrator
Equities Global equity markets fell 1.1%...
2 August, 2019 by Administrator
Equities Global equity markets rose in...
1 July, 2019 by Administrator
Equities Global equity markets rose 4.3%...
5 June, 2019 by Administrator
Equities - Global equity markets fell...
LCP Investment Summary July 2019
Posted on 2 August, 2019 by Administrator
Global equity markets rose in July, up 2.7% (in € terms). The month started well with U.S. markets reaching record highs after the U.S. and China agreed, at the G20 summit in Japan, to resume trade talks later in July in Shanghai. All was relatively quiet until near month-end when President Trump tweeted his views on the lack of progress, with China responding in kind. However, talks will resume in the U.S. next month although there remain significant areas of contention still to be resolved like intellectual property, data transfer and agriculture.
The ongoing global trade war was one of the reasons that investors believed that the U.S. Federal Reserve would cut interest rates by 0.5% in late July. But stronger-than-expected U.S. economic and inflation data over the month saw the Fed cut by only 0.25%, stating that it wasn’t the beginning of a lengthy cycle of rate cuts and also describing the move as a ‘mid-cycle adjustment’.
The ECB met in July and made no changes to their current monetary policy but said that they would act if inflation remained below its 2% p.a. target, with investors expecting some easing measures by year-end. Despite the generally negative global economic data, Q2 company earnings were better-than-expected but with guidance for Q3 earnings lowered.
Longer-dated eurozone bond prices rose 2.5% in July, with the yield on the AAA Eurozone 15+ Year Index falling to 0.01% by month-end. The Euro Broad Sovereign 10+ Year Index rose by 3.3% with its yield falling to 0.77%. Eurozone AAA bond yields fell again as economic and inflation data remained sluggish, with the German manufacturing sector seeing an accelerated drop in export orders, prompting the ECB to hint at a rate cut possibly in September.
Sample DC Schemes
All three of our sample DC Strategies rose in July as most asset classes were up.