Global stock and bond indices fell slightly over the past week, probably due to US inflation data. It jumped to 4.2% year on year in April, which was much higher than analysts and economists expected (3.6%). As a result, the broadest global stock index MSCI All Country World declined by 1.6%. However, we were pleased that value stocks performed much better than growth stocks. The global value index MSCI All Country World Value declined by only 0.7%, while the global growth index MSCI All Country World Growth declined by by 2.5%. Favorable performance was also recorded by our preferred Central European region, whose CECEEUR index even recorded a gain of 1.8%.
The broadest global bond index, Bloomberg Barclays Global Aggregate Bond, declined by 0.5%, with the average global bond yield to maturity rising by 0.05 percentage point to 1.16%. The yield to maturity of the most-watched bond, the 10-year US Treasury Bond, also rose by 0.05 percentage point to 1.63%. Corporate bond indices also recorded slight losses of up to half a percent.
Commodities did not do well either, as the global S&P GSCI commodity index fell by 1.6%. On the other hand, the price of a barrel of the North Sea Brent rose slightly by 0.6% to $ 69. Gold strengthened slightly by 0.4% to the level of $ 1,838 per troy ounce.
DXY dollar index, which measures the performance of the US dollar against a basket of other major world currencies, has remained virtually unchanged. Nevertheless, the Czech koruna strengthened. Against the euro, it strengthened by 0.7% to 25.49 CZK/EUR and against the dollar by 1.3% to 21.02 CZK/USD.
Michal Stupavský
Investment Strategist at Conseq Investment Management, a.s.