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 - May 2022
Posted on 2 June, 2022 by Administrator
Global equity markets fell -1.2% in May (in € terms), in what was another volatile month for investors. Hedged investors fared better this month as the U.S. Dollar gave up some of its recent gains against the Euro. Markets were down for the first three weeks of May as global inflation data remained stubbornly high, raising the possibility of higher-than-expected interest rate rises. Both the U.S. Federal Reserve and the Bank of England did increase interest rates in May as expected but investors remained concerned that future higher interest rate rises could potentially affect economic growth.
The S&P500 was down 20% from its January ’22 high at one stage in May, with investors rattled by disappointing earnings forecasts from some of the large U.S. retailers. However, the last week of the month then saw a strong recovery in many equity markets as inflation data looked to moderate and Central Banks hinted at a slower pace of future interest rate rises.
Longer-dated Eurozone bond prices fell 5.7% over the month, with the yield on the AAA Eurozone 15+ Year Index rising to 1.39% by month-end. The Euro Broad Sovereign 10+ Year Index fell 4.4%, with its yield rising to 2.22% by the end of May. Eurozone bond yields rose over the month as inflation data remained high and with the ECB hinting at an interest rate rise, possibly in Q3 ’22.
Yields moderated somewhat when equity markets fell, and the ECB hinted at a gradual pace of monetary tightening, but then rose sharply again at month-end after preliminary data showed that Eurozone inflation was rising more quickly than expected.
Sample DC Schemes
Our three sample DC Strategies all fell as most asset classes were down for the month.