2 September, 2020 by Administrator
Equities Global equity markets rose 5.2%...
5 August, 2020 by Administrator
Equities Global equity markets fell 0.3%...
1 July, 2020 by Administrator
Equities Global equity markets rose 1.9%...
2 June, 2020 by Administrator
Equities Global equity markets rose 3.2%...
LCP Investment Summary - August 2020
Posted on 2 September, 2020 by Administrator
Global equity markets rose 5.2% (in € terms) in August. Despite the continuing rise in Covid-19 cases globally and the reintroduction of some restrictions by various governments, investors looked to the positives which resulted in a very strong month for equity markets.
The big technology stocks continued their strong rise, as remote working and virtual shopping increased the need for their services and products. Progress on a vaccine and various treatments for Covid-19 remained generally positive. Investors got a further boost late in the month when U.S. Federal Reserve Chairperson, Jerome Powell, indicated that U.S. interest rates would remain lower for longer in order to support the still fragile economy.
Longer-dated Eurozone bond prices fell 2.9% over the month, with the yield on the AAA Eurozone 15+ Year Index rising to -0.05% by month-end. The Euro Broad Sovereign 10+ Year Index fell by 1.7% with its yield rising to 0.60%.
Late in the month, German government bond yields hit their highest level in nearly three months after the U.S. Federal Reserve’s decision to target ‘average inflation’ which could see inflation, at times, being allowed to break the Fed’s current 2.0% ceiling.
Sample DC Schemes
The sample Pension Purchase Strategy fell due to its large holding of longer-dated AAA Eurozone government bonds.