Global stock markets continued to decline slightly last week against the background of the US election campaign, the intensifying second wave of the global pandemic and worse macroeconomic data. As a result, the broadest global stock index MSCI All Country World weakened by 0.2%.
From a regional point of view, developed markets performed worse, with the MSCI World index weakening by 0.4%. On the contrary, emerging markets were able to strengthen as the MSCI Emerging Markets index recorded a solid gain of 1.1%.
Bloomberg Barclays global bond market index strengthened slightly again by 0.1%, with the average global yield to maturity rising by 0.04% to 0.92%. At the same time, the global volume of bonds with a negative yield to maturity has approached the historic high of last year at $ 16 trillion.
S&P GSCI global commodity index depreciated by 1.1%. The price of Brent crude oil fell 2.7% to $ 42 a barrel. Gold strengthened slightly by 0.1% to $ 1902 an ounce.
Last week, investors closely followed developments on the Turkish lira, which continued to weaken. This morning, the Turkish lira against the US dollar even reached a new all-time low, exceeding the level of 8 Turkish lira per dollar. International investors fear the continued strong growth of new loans in the Turkish economy, the still large current account deficit and, last but not least, verbal skirmishes between Turkish officials and officials of the European Union and the United States.
This week, investors will be looking forward to Thursday, when the regular meeting of the European Central Bank will take place. The ECB is expected to indicate an increase in the volume of the quantitative easing program due to the fundamentally negative effects of the Covid-19 pandemic on the European economy.
Investment Strategist at Conseq Investment Management, a.s.