Erste Asset Management

Positive summary of last week – Update from the Investment Division

Positive summary of last week – Update from the Investment Division
Positive summary of last week – Update from the Investment Division
(c) APA-picturedesk
Share post:

What has occurred over the weekend?

Equity markets had a good week. The US-equity index S&P 500 gained + 10,3%. Also the European markets gained significantly. The EuroStoxx 50 gained 7,5%. A bit negative were the losses on Friday (S&P 500 – 3,4%, EuroStoxx 50 – 4,2%).

Volatility in the markets remained on a higher level, but liquidity improved. Liquidity improved because of the support measures of the central banks. That led last week to a reduction of credit risk margins for Corporate Bonds and also Italian government bonds. Yields of US-Treasuries and German Bunds decreased last week as well, whereas the fluctuation margin was smaller compared to the weeks before. 10Y German Bunds show currently a yield of -0,484%.

Additionally further fiscal policy measures are in preparation. In the USA preparation continues for a program to support micro companies and the US president signed the USD 2000 trillion stimulus package on Friday. In Japan Prime Minister Shinzo Abe announced to work on a further economic stimulus package. That should include direct payments to private individuals as well. The total amount of all previously announced and future packages together will surpass the packages created during the financial crisis 2008/2009.

In the USA the president announced a U-turn. After he wanted to loosen the steps to contain the virus before Easter, he extended all restrictions to reduce social contacts by a month. They are now valid until end of April. A small relaxation in the spreading of the virus seems to occur in Italy, while Spain is the new crisis center in Europe. Also Moscow and several cities in Nigeria announced stay-at-home orders. In regards to the virus there is also positive news: The Food and Drug Administration in the USA granted Emergency Use Authorization to a COVID-19 test by producer Abbott Labs that delivers results within a few minutes.

What will we pay attention to during this week?

We will continue to monitor the interaction of the two poles (containment measures and support packages). This week several important data publications are scheduled. That includes the global purchase manager indices, which give an indication for the extent of the decrease of economic activity. In China an increase is expected.

Also the development of the unemployment figures in the USA, which will be announced on Thursday are of great interest to the market participants.

Our dossier on coronavirus with analyses:


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



Legal disclaimer

This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. The language of communication of the sales offices is German and the languages of communication of the Management Company also include English.

The prospectus for UCITS funds (including any amendments) is prepared and published in accordance with the provisions of the InvFG 2011 as amended. 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 conjunction with the InvFG 2011.

The currently valid versions of the prospectus, the Information for Investors pursuant to § 21 AIFMG, and the key information document can be found on the website under “Mandatory publications” and can be obtained free of charge by interested investors at the offices of the Management Company and at the offices of the depositary bank. The exact date of the most recent publication of the prospectus, the languages in which the key information document is available, and any other locations where the documents can be obtained are indicated on the website A summary of the investor rights is available in German and English on the website and can also be obtained from the Management Company.

The Management Company can decide to suspend the provisions it has taken for the sale of unit certificates in other countries in accordance with the regulatory requirements.

Note: You are about to purchase a product that may be difficult to understand. We recommend that you read the indicated fund documents before making an investment decision. In addition to the locations listed above, you can obtain these documents free of charge at the offices of the referring Sparkassen bank and the offices of Erste Bank der oesterreichischen Sparkassen AG. You can also access these documents electronically at

N.B.: The performance scenarios listed in the key information document are based on a calculation method that is specified in an EU regulation. The future market development cannot be accurately predicted. The depicted performance scenarios merely present potential earnings, but are based on the earnings in the recent past. The actual earnings may be lower than indicated. Our analyses and conclusions are general in nature and do not take into account the individual characteristics of our investors in terms of earnings, taxation, experience and knowledge, investment objective, financial position, capacity for loss, and risk tolerance.

Please note: Past performance is not a reliable indicator of the future performance of a fund. Investments in securities entail risks in addition to the opportunities presented here. The value of units and their earnings can rise and fall. Changes in exchange rates can also have a positive or negative effect on the value of an investment. For this reason, you may receive less than your originally invested amount when you redeem your units. Persons who are interested in purchasing units in investment funds are advised to read the current fund prospectus(es) and the Information for Investors pursuant to § 21 AIFMG, especially the risk notices they contain, before making an investment decision. If the fund currency is different than the investor’s home currency, changes in the relevant exchange rate can positively or negatively influence the value of the investment and the amount of the costs associated with the fund in the home currency.

We are not permitted to directly or indirectly offer, sell, transfer, or deliver this financial product to natural or legal persons whose place of residence or domicile is located in a country where this is legally prohibited. In this case, we may not provide any product information, either.

Please consult the corresponding information in the fund prospectus and the Information for Investors pursuant to § 21 AIFMG for restrictions on the sale of the fund to American or Russian citizens.

It is expressly noted that this communication does not provide any investment recommendations, but only expresses our current market assessment. Thus, this communication is not a substitute for investment advice, does not take into account the legal regulations aimed at promoting the independence of financial analyses, and is not subject to a prohibition on trading following the distribution of financial analyses.

This document does not represent a sales activity of the Management Company and therefore may not be construed as an offer for the purchase or sale of financial or investment instruments.

Erste Asset Management GmbH is affiliated with the referring Sparkassen banks and Erste Bank.

Please also read the “Information about us and our securities services” published by your bank.

Subject to misprints and errors.

Leave a comment Required fields are marked with *

Your email address will not be published. Required fields are marked *