Stock market rally – Update from the Investment Division

Stock market rally – Update from the Investment Division
Stock market rally – Update from the Investment Division
(c) unsplash
Share post:

What has occurred since yesterday ?

Yesterday it seemed that the equity markets had to catch their breath after their rally over the last weeks. The European markets were mainly negative and the US equity index S&P 500 closed the day with a loss of 0,78%. Since the beginning of May it was only the seventh day the S&P 500 had to take a daily loss. Also volatility in the markets significantly decreased. The fear index “VIX”, which calculates volatility in US-equities, decreased from 38 (beginning of May) to 27. The market participants expect significantly lower volatility compared to the months before. But the level is still significantly above the historic average.

The positive development of risky assets is still supported by monetary and fiscal measures. The US central bank Fed just announced an easing for small and medium size businesses to access loans. In France certain measures to avoid bankruptcies and employee layoffs were extended by two years.

Positive was the development in the investment grade government bond markets. In the USA the yield for 10Y bonds decreased to 0,82%. Also gold could gain almost 1% in the last trading session.

 

Wichtige rechtliche Hinweise:
Prognosen sind kein zuverlässiger Indikator für künftige Entwicklungen.

DOSSIER

RESPOND TO THE ARTICLE

Leave a comment Required fields are marked with *

Your email address will not be published.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

Legal disclaimer

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 Amtsblatt zur Wiener Zeitung 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 investor document/KID can be viewed in their latest versions at the web site www.erste-am.com 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 investor document is available, and any additional locations where the documents can be obtained can be viewed on the web site www.erste-am.com.

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.