Last week financial markets recorded a correction. We have not seen any major news, maybe apart from the new IMF’s World Economic Outlook. In this heavily followed document IMF stressed that the continuation of the global economic recovery is highly dependent on successful vaccines rollout and that risks to the outlook are extremely high. Moreover the World Bank stressed that if the vaccines rollout will not be successful, the global economic growth could be only a half of the current forecasts in 2021. In the end global stock markets, as measured by the broadest global stock index MSCI All Country World, declined by 3.6% last week.
From a regional perspective, emerging markets performed worse as MSCI Emerging Markets index declined by 4.5%, while developed markets as measured by MSCI World index declined “only” by 3.4%.
As regards global bond markets, according to the broadest global fixed-income index Bloomberg Barclays Global Aggregate Bond, these slightly declined by 0.2%. The average global bond yield to maturity remained flat close to all-time low at 0.88%.
Global commodity markets were slightly in the plus as the global commodity index S&P GSCI increased by 0.8%. Brent crude oil price increased as well by 0.8% to the level of USD 56 per barrel. Gold declined by 0.5% to USD 1847 per troy ounce.
Investment Strategist at Conseq Investment Management, a.s.