While the global financial markets were under severe pressure from the coronavirus epidemic the week before last week, last week the trend reversed and stock markets grew strongly. And this was despite the fact that new global macroeconomic data were rather on the weaker side.
Global stock markets strengthened by 2.7 % while European and US stocks performed best gaining more than 3 %. On the contrary global bond markets weakened by 0,7 %. Of the bonds only the riskiest segment, i.e. speculative grade corporate bonds (high-yield), performed well gaining 0.4 %. Commodities continued slightly retreating and especially crude oil as Brent weakened more markedly by 6.3 % and since the beginning of the year is lower by 17.5 %. On the FX side US dollar had a strong tendency to richen as its index gained 1.3 %. At the same time Czech koruna performed well strengthening against euro by 0.7 % to 25.03 EUR/CZK reacting to CNB’s rate hike.
Investment Strategist Conseq Investment Management, a.s.