Erste Asset Management

Postitive end of the week – Update from the Investment Division

Postitive end of the week – Update from the Investment Division
Postitive end of the week – Update from the Investment Division
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What has occurred since the weekend?

The end of the week for the stock markets on Friday was more positive than the beginning of last week. The leading US index S&P 500 gained 0.4% on Friday, closing 2.3% lower than the previous week. The European and Asian markets were also largely positive on Friday. The yield on 10-year government bonds in the US is currently at 0.6% and that on German government bonds is -0.5%. In these segments, the fluctuations in recent weeks have been low. Gold was up by 0.8%.

The economic data that is currently being released confirms the recession that was generally expected. Economic growth in Japan fell by 3.4% (annualized) in Q1. This was due to a drop in consumption and business investment. However, this only seems to be a foretaste of what could come in Q2. Currently, market participants expect GDP in Japan to contract by -21.5% (annualized) during this period.

In the US, Jerome Powell, the chairman of the Federal Reserve, warned that the economic recovery could extend to the end of 2021. In the meantime, the Fed expects the US economy to recover steadily from the second half of 2020 onwards. He further stated that a full recovery of economic performance would require a great deal of public confidence and this could take time until a vaccine is available.


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



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This document is an advertisement. Unless indicated otherwise, source: Erste Asset Management GmbH. Our languages of communication are German and English.

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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