Coronavirus dominated media headlines again in the past week. IMF decreased its forecast for the global economy growth due to the epidemic while significantly decreased its forecast for Chinese economy growth. Virus is also harshly impacting global supply chains. Moreover Japan’s economy plummeted in the fourth quarter.
As a result global stock markets declined by 1.3 %. Especially emerging markets were not successful as their index declined by 2.0 %. Global bond markets did not show significant moves. On the other hand Czech government bonds performed very well. Their index gained 0.6 %. Commodities were strengthening slightly however precious metals performed strongly. Gold gained 3.9 % and silver 4.5 %. Since the beginning of the year global stock markets are stronger by 1.3 % which is an extremely positive result in the light of the above mentioned news.
Michal Stupavský
Investment Strategist Conseq Investment Management, a.s.