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LCP Investment Summary October 2020
LCP Investment Summary October 2020

3 November, 2020 by Administrator

Equities Global equity markets fell 2.3%...

LCP Investment Summary September 2020
LCP Investment Summary September 2020

2 October, 2020 by Administrator

Equities Global equity markets fell 1.3%...

LCP Investment Summary August 2020
LCP Investment Summary August 2020

2 September, 2020 by Administrator

Equities Global equity markets rose 5.2%...

LCP Investment Summary  ____ July 2020
LCP Investment Summary ____ July 2020

5 August, 2020 by Administrator

Equities Global equity markets fell 0.3%...

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LCP Investment Summary - June 2020

Posted on 1 July, 2020 by Administrator

LCP Investment Summary - June 2020

Equities

Global equity markets rose 1.9% (in € terms) in June, in what was a mixed month for investors. Markets started the month very strongly following the announcement of a German €130bn domestic stimulus package, an increase by the ECB in its emergency stimulus measures and finally, the release of an unexpectedly positive May jobs report in the U.S.

However, the mood changed mid-month with U.S. equities having their worst day in three months after a downbeat outlook from the U.S. Federal Reserve, as well as growing fears of a possible COVID-19 ‘second wave’ as restrictions eased globally. The second half of the month remained mixed with some investors becoming more wary, especially following the very sharp rise in global equites since the March lows, as the number of new virus cases increased, particularly in the U.S., Brazil and India. The WHO Director-General also stated in late June ‘that the worst is yet to come’.

Bonds

Longer-dated Eurozone bond prices rose 0.6% in June, with the yield on the AAA Eurozone 15+ Year Index falling to -0.12% by month-end. The Euro Broad Sovereign 10+ Year Index rose by 1.8% with its yield falling to 0.62%. It was also a mixed month for the bond markets with German bund yields initially hitting a five-month high as the ECB pledged further support for the eurozone area and with the positive U.S. jobs report in early June.

Yields then fell for the remainder of the month as rising COVID-19 cases globally made some investors reassess the strength and timing of a recovery in the global economy.

Sample DC Schemes

Our three sample DC Strategies all rose in June with most assets classes up.

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