5 July, 2022 by Administrator
Equities Global equity markets fell...
2 June, 2022 by Administrator
Equities Global equity markets fell -1.2%...
5 May, 2022 by Administrator
Equities Global equity markets fell 3.2%...
5 April, 2022 by Administrator
Equities Global equity markets rose 3.7%...
LCP Investment Summary - March 2022
Posted on 5 April, 2022 by Administrator
Global equity markets rose 3.7% in March (in € terms) with Euro investors benefitting from a strengthening of the U.S Dollar versus the Euro of around 1.4%. Equity markets showed signs of recovery during the month following a rocky start to 2022. Investor’s optimism over the welcomed news of peace talks between Ukraine and Russia was a key driver for performance. Countries continued to impose heavy economic and financial sanctions against Russia, which included the freezing of Russia’s Central Bank reserves.
In attempts to reduce reliance on Russian oil exports and ease pressure on prices, the US committed to releasing around 1mn barrels of oil daily over the next six months from the US Emergency stockpile. European governments were approving measures in attempts to subsidise high energy bills for households. Commodities rose 9.6% in March. The energy crisis has been a catalyst for governments to accelerate energy transition plans in attempts to reduce reliance on Russian resources.
Longer-dated Eurozone bond prices fell 5.0% over the month, with the yield on the AAA Eurozone 15+ Year Index rising to 0.64% by month-end. The Euro Broad Sovereign 10+ Year Index price fell 3.6% with its yield rising from 1.16% at the end of February to 1.41% by month-end. Eurozone bond yields rose significantly over the month with increased inflationary pressures.
The U.S. Federal Reserve and Bank of England increased interest rates during the month as anticipated. The ECB confirmed if inflation expectations continued to rise, the asset purchasing programme would conclude by Q3 2022 with potential interest rate rises to follow.
Sample DC Schemes
Two of our sample DC Strategies rose over March, as most asset classes were positive.