All articles on the topic “Markets”
Ukraine conflict: sanctions against Russia
Last Friday saw the West’s first reaction to the invasion. Both the US, the EU and the UK announced sanctions against Russia. These mainly target Russia’s largest banks, oligarchs and the export of technology goods to Russia.
Escalation of the conflict between Russia and Ukraine: are the markets at risk?
The Russia/Ukraine conflict is keeping the markets in suspense. Everything is possible – from continued diplomacy in order to contain the escalation to harder sanctions in case of a more comprehensive invasion. The volatility on the financial markets will remain high.
The crisis in Ukraine
The risk of an escalation of the geopolitical conflict between Russia, Ukraine and NATO has risen further in recent days.
Erste Asset Management achieves record result in 2021
Erste Asset Management was yet again ranked first among the Austrian investment companies last year. Assets under management in Austria had increased by 16.6% y/y to EUR 47.7bn as of 31 December 2021.
Investing – a long term story
We have seen some extraordinary years speaking about equity and multi asset performance. Interest rates were low, volatility – representing the average daily price changes – was comparably low. What is the situation today?
Gas and Oil Prices Continue to Soar
Energy prices are going through the roof at the moment. The causes are both political and economic. Shares in the energy and commodities sector offer potential for further price increases.
10 theses for 2022
Waves of infections will continue to influence economic activity and the markets. What will happen in China, what are the inflation risks and will it be volatile? Our chief economist Gerhard Winzer has drawn up 10 theses for the year 2022.
Italy is electing a new president
Italy is about to elect a new president of state. The election that will be held from 24 January 2022 in several ballots is going to determine the successor of the current, 80-year old President Sergio Mattarella, whose mandate expires in February 2022. This was announced by the president of the chamber of deputies of […]
Pandemic year three: what are the challenges ahead?
We are now into the third year of the pandemic. Since the spring 2020 collapse, economic activity and markets have shown exceptional resilience. This is not to be taken for granted. After all, the list of potential negative influences (“challenges”) is long.
Interview: Behavioral Finance
Interview with Dr. Manfred Frühwirth, Vienna University of Economic and Business Administration What is Behavioural Finance? Behavioural Finance is located at the interface of finance and psychology. As a rule, Behavioural Finance investigates how irrational behaviour (most often on the investors’ part) affects asset prices on the capital market. 2a) Are there any examples of […]
New German “Traffic Light” Coalition Launches Climate and Economic Programme During Difficult Phase
Germany’s first federal government coalition of the Social Democratic Party (SPD), the Free Democratic Party (FDP) and the Green Party – called the “traffic light” coalition for the parties’ traditional colours – has now been in office for just under two weeks and is starting its planned renewal programme at the most difficult time imaginable. The train towards climate protection and renewable energies is picking up speed.
Inflation at its peak – what are the reasons?
At 5.2% y/y, consumer price inflation for the OECD region reached the highest value in October since 1997. Has inflation peaked, or are we at the outset of a sustained period of high inflation?
Black Friday and Cyber Monday Kick off the Year’s most Important Retail Season on Friday
On November 26, the traditional “Black Friday“ of discount deals in the US and many other countries officially kicks off the immensely important Christmas shopping season for many industries. However, with the trend towards online shopping accelerating with the Corona pandemic, how will this turn out this year?
Inflationary Boom – A thin red line towards welfare
The global view on inflation has turned completely since Spring 2020. While low inflation has been an issue between the Great Financial Crisis and the start of the pandemic, multi-year-highs in inflation were reached in Spring 2021. What will happen next?
A green label does not necessarily mean green on the inside
Funds marketing themselves as green investment do not always focus on companies that fight climate change, develop solar modules or recycle batteries. Instead, many of them look like traditional portfolios holding large tech companies – yet they wear green labels.
Japan’s Prime Minister Kishida Promises Economic Stimulus Programmes to Combat Corona Crisis After Election Victory
The parliamentary elections in Japan confirmed Prime Minister Fumio Kishida’s pro-business course. Will the stock market gain new momentum?
Stewardship vs. greenwashing
By integrating sustainable factors, we pursue social and environmental justice and have mechanisms and tools in place to avoid greenwashing. Our mission is also to align our sustainability approach with the investment needs of our clients to build a solid foundation for the future.
Yield opportunity in the bond market: Q4 2021
Most economic indicators for August and September point to a slowdown in economic growth. However, growth rates still remain relatively strong
Continuing Oil Price Rally Leads to new Multi-Year Highs
Crude oil prices continued to soar in the past week. The background to the oil price increases lies in the rising demand for oil combined with the ongoing economic recovery and fears of tight supply. The price surge in recent days was triggered by a drop in oil reserves reported by the US government on Wednesday.
Stagflation – a serious risk scenario
In recent months, the risk of stagflation (the simultaneous occurrence of economic stagnation and inflation) has increased. Without the pandemic, output would be higher and inflation lower: bottlenecks in production and logistics have slowed economic activity and caused prices in the goods sector to rise sharply.
Network Outage and Whistleblower give Facebook Critics new Fuel for Fire
Two nearly simultaneous events surrounding social network behemoth Facebook have recently directed public attention towards the network’s impact and power, giving Facebook critics new momentum: After an outage of the most important Facebook services last Monday that lasted several hours, former Facebook employee and whistleblower Frances Haugen made serious accusations against the company before the US Senate the following day.
Falling Momentum and Hawkish central banks
Falling economic indicators, anger in China and interest rate decisions by central banks are currently in the focus of the financial markets. Our chief economist Gerhard Winzer analyses the current situation.
House Of Cards – the case of Evergrande
Is there a solution to the current situation of real estate developer Evergrande? How high is the share of speculative real estate purchases in China, who profits and what Evergrande has to do with the 2008 financial crisis, explains Senior Professional Fund Manager Péter Varga.
Gas Price Surge Driving up Electricity Prices and Fueling Inflation Concerns
Gas prices have soared in recent weeks. What are the reasons behind this? Will the planned increase in Norwegian gas supply bring the relief we have been longing for? Read more in our blog.
Has the real estate boom in China come to an end?
The economic boom of China has also been accompanied by a boom in the real estate industry over the past decades. The liquidity problems of the Chinese real estate developer Evergrande are heralding the end of the real estate boom in China.
German Bundestag election – decisions for the future
Germany is facing an exciting Bundestag election on 26 September 2021. The outcome is completely open, but it sets the course for economic policy. The successor of long-term Chancellor Angela Merkel will also influence decisions at European level.
Theranos: user-friendliness and/or technological progress
Theranos was founded in 2003 by Elizabeth Holmes. The rise and subsequent trouble of the laboratory diagnostics company illustrates that usability does not suffice for the success of product and business ideas if the technological progress cannot keep up.
20 Years of 9/11: Full Circle from Bush to Biden
Exactly 20 years ago, on 11 September 2001, the USA was shaken by the worst terrorist attacks in its history. The attacks on the World Trade Center in New York claimed the lives of 3,000 people. They changed world politics. The effects are still a big issue today – keyword Afghanistan.
European Forum Alpbach: Overcoming the Crisis with Energy Transition, Capital Markets Union and Digitalisation
“The Great Transformation”: This was this year’s Forum Alpbach’s overarching motto for the talks and panel discussions among the assembled top politicians, economic leaders and scientists from around the world. Partly on-site and partly online, between 18 August and 3 September a total of 4,134 participants from 62 countries discussed possible ways out of the corona pandemic crisis and global future scenarios.
Global economy running into headwind
The global economy is in the recovery phase of the cycle. Economic growth is well above the long-term trend, but headwinds have increased recently. What needs to happen to ensure that growth does not slow down? Chief Economist Gerhard Winzer analyses the prospects for the future.
Tourism Industry on the Path to Recovery in Summer, but Pre-Crisis Level Still a Long Way Off
The travel and tourism industry is continuing its recovery. The number of overnight stays increased noticeably in what is now the second Corona pandemic summer, and travel figures paint a similar picture. However, pre-Corona pandemic levels are still a long way off, and the recent strong spread of the delta variant of the virus is also an uncertainty factor.
Commodities in strong demand
Whether you want to buy a house or buy a car, many private consumers currently deal with soaring prices for materials and unpleasantly long delivery periods. This situation is directly reflected in commodity prices.
Germany’s economy recovering from slump
Germany’s economy is back on a growth path after the pandemic dip at the beginning of the year. While service providers and retailers benefit from the relaxation of the Corona measures, the industry is being held back by material shortages and supply bottlenecks. How does the German stock index (DAX) react?
How many chips are installed in a car?
Car manufacturers are under pressure to meet the sharply increased demand for new cars. Many production lines were closed in the lockdowns. This is why individual parts are only now being re-produced and there are supply bottlenecks. What do microchips have to do with this and why are used cars so expensive in the US?
Erste Asset Management financial markets outlook for the second half of 2021
Since the beginning of the year, the rapid recovery of the economy has mainly supported securities such as equities. But what happens next? Erste AM Managing Director Heinz Bednar and Head of Multi Asset Alexander Lechner explain how the second half of 2021 and especially our focus on sustainability will continue to develop in our outlook for the next six months.
Is this the end of the reflation trade?
Inflation peaked in the US and the eurozone in May and has declined from there. Long term yields fell and lowered real yields. How could this happen?
Oil prices climb to multi-year highs after OPEC negotiations fail
The rise in oil and energy prices is fueling concerns about a burgeoning inflation. Behind the failure of the latest OPEC negotiations is also a political competition for influence and power in the Gulf region.
Falling economic momentum is not bad news
One of the most important economic indicators, the global purchasing managers index for the manufacturing sector, fell in June compared to the previous month. Is that bad news for risky asset classes like stocks? Our chief economist Gerhard Winzer analyzes the most important scenarios.
5 years after the Brexit referendum: UK on the path to recovery in turbulent times
These days mark the 5th anniversary of the British vote to leave the European Union. How does the UK stand economically after the “Brexit”? What challenges still lie ahead for the country? What opportunities do investors have? Read more in today’s blog.
The Fed is a dove
Equities have been weaker in recent days. This is largely due to concerns that sooner-than-expected interest rate increases in the USA could be detrimental to the financial market. Chief economist Gerhard Winzer explains why in the most likely case scenario, this will not be happening in the foreseeable future.
G7 countries agree climate targets, vaccination programmes and China policy
With renewed vigour, the heads of state of the G7 group of leading industrialised nations recently agreed climate targets, vaccination programmes for poor countries and a common front against China at their eponymous summit, held in the British resort of Carbis Bay.
China bonds in demand for mixed funds
China as a third pole. The reasons why fund managers expect China government bonds in mixed funds to generate more return and at the same time provide better diversification.
Covid vaccinations: Apathy follows euphoria
If you ask around in your own circle of acquaintances, you will find that the vaccination coverage rate is now significant. In Austria, it seems, everyone who really wants a vaccination has already received at least a partial vaccination – regardless of prioritization, age or medical history. The EU vaccination rate lags about 6 weeks […]
Rapid recovery in the developed world
The global economy is caught between a strong recovery and inflation fears. Despite low risk premiums, Erste AM Chief Economist Gerhard Winzer continues to see opportunities for equities as long as bond yields rise less than corporate earnings growth rates. Read more in his blog analysis.
Financial Markets: robo investment vs. human judgment
It is impossible not to notice the rising interest in algorithm-based investing. Fund manager Mikuláš Splítek argues the case of whether a robo-advisor or human judgment is better to beat the market.
Sell in May and …
.. go away, but don’t forget to come back in September. This is an old stock market adage that most investors probably know. There are loads of those, and this is among the most popular ones. Our Head of Global Strategies & Research, Alexander Sikora-Sickl explains what’s behind it.
Global semiconductor shortage continues to pose challenge for automotive and electronics sectors
The global shortage of semiconductors is causing problems for car manufacturers and the computer industry. Trends such as the digitalisation of working life or autonomous driving are likely to increase demand even more. Technology shares are in demand.
Social impact via engagement
Impact investment More and more investors want to invest their money responsibly and sustainably – not only to create additional inflows, but also to create an “impact”. As a result, the demand for so-called impact funds has increased substantially in recent years. Especially young people, who until very recently had little interest in investment funds, […]
New turbulences in Turkey
Erste Asset Management fund manager Anton Hauser, specialist for emerging markets bonds, analyses the status quo of the Turkish financial markets after the surprising dismissal of the Turkish central bank governor by President Erdogan.
Hopes for upswing continue to drive oil and industrial metal prices higher
Hopes for an economic recovery, but also the latest inflation fears, have recently fuelled the price rally on the commodity markets, with prices for crude oil and industrial metals continuing to soar. Several metal prices recently rose to multi-year highs.