Shares in positive territory – Update from the Investment Division

Shares in positive territory – Update from the Investment Division
Shares in positive territory – Update from the Investment Division
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What’s happened since yesterday?

Stocks closed in positive territory yesterday. The US stock market was lifted by technology stocks such as Apple and Microsoft. Positive macroeconomic data also provided support. President Trump is also looking into the possibility of directly extending the expiring Corona-related increased unemployment benefits. Credit-safe government bonds declined slightly. The US dollar rose against the euro to 1.179. Gold is trading at USD 1977 and oil (WTI grade with September delivery) at USD 40.6.

Company reports: More than half of the US companies have now published their 2nd quarter figures. Profit growth so far has been -10.5%, which is significantly better than expected. The strongest growth so far has been in consumer services (including Amazon, Netflix and Ebay) and healthcare. The weakest sector remains oil and gas.

In Europe, about one third of the companies have also already reported growth. The profit growth here is -18%. As previously reported, the sector composition of the European indices is different from that of the US. However, a similar pattern can be seen at sector level. Oil and gas (heavily weighted in Europe) is also the weakest sector here, while technology (fewer and smaller tech companies are listed in Europe) is one of the strongest sectors.

Despite the sharp drop in profits, the results are much better than expected, which provides additional support for equities and corporate bonds.

 

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 www.erste-am.com 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 www.erste-am.com. A summary of investor rights is available in German and English on the website www.erste-am.com/investor-rights 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.

This document serves as additional information for our investors and is based on the knowledge of the staff responsible for preparing it at the time of preparation. 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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