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LCP Investment Summary August 2021
LCP Investment Summary August 2021

2 September, 2021 by Administrator

Equities Global equity markets rose 2.9%...

LCP Investment Summary -  July 2021
LCP Investment Summary - July 2021

4 August, 2021 by Administrator

Equities Global equity markets rose 1.4% in...

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LCP Investment Summary August 2021

Posted on 2 September, 2021 by Administrator

LCP Investment Summary August 2021

Equities

Global equity markets rose 2.9% in August (in € terms), with some indices hitting record highs early in the month after the release of strong economic data and corporate earnings. Investors also welcomed the passing by the U.S. Senate of the $1 trillion infrastructure package, and the release of lower-than-expected U.S. inflation data.

Markets were jittery mid-month with the continuing rise of Covid Delta cases, even if both hospitalisations and deaths are much lower than in previous waves. U.S. retail sales and housing data were also mixed and the U.S. Federal Reserve meeting minutes stated that most of its members favoured relaxing monetary support measures in 2021, earlier than investors had expected (although Fed Chair Powell reassured investors somewhat in his Jackson Hole speech).

Markets then finished the month strongly, with some indices again hitting record highs, with Pfizer getting full approval for its Covid vaccine from the U.S. FDA and the release of solid economic data in both the U.S. and Europe.

Bonds

Longer-dated Eurozone bond prices fell 1.0% over the month, with the yield on the AAA Eurozone 15+ Year Index rising to -0.04% by month-end. The Euro Broad Sovereign 10+ Year Index fell 1.1% with its yield rising to 0.61% by month-end.

Longer-dated bond yields were flat for most of the month over fears that the rising Covid case numbers could stall economic growth but yields then rose sharply at month-end after stronger-than-expected German and Eurozone inflation data, with the economic recovery from the pandemic leading to many supply shortages.

Sample DC Schemes

Two of our three sample DC Strategies rose over the month as most asset classes were up.

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