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LCP Investment Summary - June 2022
LCP Investment Summary - June 2022

5 July, 2022 by Administrator

Equities Global equity markets fell...

LCP Investment Summary - May 2022
LCP Investment Summary - May 2022

2 June, 2022 by Administrator

Equities Global equity markets fell -1.2%...

LCP Investment Summary - April 2022
LCP Investment Summary - April 2022

5 May, 2022 by Administrator

Equities Global equity markets fell 3.2%...

LCP Investment Summary - March 2022
LCP Investment Summary - March 2022

5 April, 2022 by Administrator

Equities Global equity markets rose 3.7%...

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LCP Investment Summary - April 2022

Posted on 5 May, 2022 by Administrator

LCP Investment Summary - April 2022

Equities

Global equity markets fell 3.2% in April (in € terms). This loss was somewhat lessoned for the Euro investor as the U.S. Dollar strengthened against the Euro. Markets experienced sharp falls over the month, sparked by increased concerns over rising interest rates and slower economic growth. Major technology companies such as Apple, released business updates around supply chain issues negatively impacting future earnings. This triggered a large sell-off in technology stocks at month end, the worst month for Wall Street tech stocks since the 2008 Financial Crisis.

Tension remained high throughout the month as the Russian invasion of Ukraine continued. Investor optimism over peace talks and a potential resolution faded as the war spread into further parts of Ukraine. Europe’s economy continued to face the implications of the war, as energy and food prices continued to rise, and supply chain issues worsened.

Bonds

Longer-dated Eurozone bond prices fell 7.6% over the month, with the yield on the AAA Eurozone 15+ Year Index rising to 1.07% by month-end. The Euro Broad Sovereign 10+ Year Index also fell 7.6%, with its yield rising to 1.91% by the end of April.

Eurozone bond yields rose sharply over the month. Eurozone inflation continued to rise, largely driven by exposure to rising energy costs which make up around half of Eurozone inflation. The ECB issued a ‘mea culpa’ for persistently underestimating inflation, due to errors in their forecasting models. The ECB continued to reduce its monetary stimulus as planned, with investors anticipating interest rate rises in Q3.

Sample DC Schemes

Our three sample DC Strategies all fell as most asset classes were down for the month.

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