DAILY SKETCH - Inflationary pressures have a reason to rise

    • Daily sketch

As today's chart of performance of the major asset classes since the beginning of the year shows, inflationary pressures now really have reason to grow. Commodity prices have been rising very sharply since the beginning of the year. S&P GSCI global commodity index is currently up 15% since the beginning of the year. Of the specific commodities, oil in particular grew, with the price of one barrel of the North Sea Brent rising 22% since the beginning of the year. At the same time, the prices of other commodities are also significantly strengthening. Copper adds 19%, natural gas 13% and aluminum 11%.

DAILY SKETCH - Inflationary pressures have a reason to rise

On the other hand, bonds are not doing well at all this year, when the broadest global bond index Bloomberg Barclays Global Aggregate Bond has been losing 3% since the beginning of the year. At the same time, Czech government bonds are also losing 3%.

Stocks are doing relatively well. The broadest global stock index MSCI All Country World has appreciated by 3% since the beginning of the year. From a regional point of view, Japanese stocks have been the most successful so far, attributing a gain of 8% according to the Nikkei index. On the contrary, growth stocks, which according to the MSCI All Country World Growth Index attribute a gain of only 1%, are not doing very well.


 
Michal Stupavský
Investment Strategist at Conseq Investment Management, a.s.

 

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