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 - June 2022
Posted on 5 July, 2022 by Administrator
Global equity markets fell sharply by 6.7% in June (in € terms). This loss was somewhat lessened for the Euro investor as the U.S. Dollar strengthened against the Euro. Markets recorded one of the worst first half year performances in over fifty years. All sectors, with the exception of energy stocks, dropped since the beginning of the year.
Over the month investors continued to face persistent inflation and highly volatile market conditions which led to growing concerns over the possibility of a recession and slower economic growth. Central banks continued to raise interest rates during the month with the Fed raising rates by 0.75%, the US Central bank’s largest single increase since 1994.
Longer-dated Eurozone bond prices fell 5.2% over the month, with the yield on the AAA Eurozone 15+ Year Index rising to 1.7% by month-end. The Euro Broad Sovereign 10+ Year Index price fell 4.0% with its yield rising from 2.2% at the end of May to 2.5% by month-end.
Eurozone inflation hit a record high in June as food and energy prices continued to rise. The ECB faced increased pressure on which actions they will take in attempts to curb inflation. The ECB is expected to raise rates in July by 0.25%, however investors are speculating this may need to be increased further.
Sample DC Schemes
All three of our sample DC Strategies fell over June, as most asset classes were negative for the month