Erste Asset Management

Corporate earnings provide tailwind – Update from the Investment Division

Corporate earnings provide tailwind  – Update from the Investment Division
Corporate earnings provide tailwind – Update from the Investment Division
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What’s happened since yesterday?

We reported last week that the interest rate cuts were a major driving force for the equity markets in recent weeks. In addition, the surprisingly good corporate earnings also provided a tailwind.

In the US, more than half of the companies have already published their Q2 results. In the process, 85 % have exceeded analysts’ estimates, while only 13 % have disappointed. In Europe, about one-third of the companies have reported. The profit growth here is -18%. Although the sector composition differs between the US and Europe, a similar pattern can be seen: Oil and gas (more heavily weighted in Europe) is the weakest sector this year, while technology (heavily weighted in the US), consumer goods and healthcare are among the strongest sectors.

Equity markets were little changed yesterday. The leading US index, the S&P 500, closed up 0.36%. The Asian trading session also brought little change.

The gold price, on the other hand, continued to rise, reaching a new all-time high of over USD 2,030. In our opinion, the reason for the significant price increase in recent weeks is mainly due to low real interest rates at a global level. Concerns about the longer-term development of inflation are also prompting some market participants to invest in the precious metal.


Legal note:
Prognoses are no reliable indicator for future performance.



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The prospectus for UCITS (including any amendments) is published in accordance with the provisions of the InvFG 2011 in the currently amended version. Information for Investors pursuant to § 21 AIFMG is prepared for the alternative investment funds (AIF) administered by Erste Asset Management GmbH pursuant to the provisions of the AIFMG in connection with the InvFG 2011. The fund prospectus, Information for Investors pursuant to § 21 AIFMG, and the Key Information Document can be viewed in their latest versions at the web site within the section mandatory publications or obtained in their latest versions free of charge from the domicile of the management company and the domicile of the custodian bank. The exact date of the most recent publication of the fund prospectus, the languages in which the Key Information Document is available, and any additional locations where the documents can be obtained can be viewed on the web site A summary of investor rights is available in German and English on the website as well as at the domicile of the management company.

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Detailed information on the risks potentially associated with the investment can be found in the fund prospectus or Information for investors pursuant to § 21 AIFMG of the respective fund. If the fund currency is a currency other than the investor's home currency, changes in the corresponding exchange rate may have a positive or negative impact on the value of his investment and the amount of the costs incurred in the fund - converted into his home currency.

Our analyses and conclusions are general in nature and do not take into account the individual needs of our investors in terms of earnings, taxation, and risk appetite. Past performance is not a reliable indicator of the future performance of a fund.

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