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FINANCIAL MARKETS WEEKLY - Financial markets has rebounded quickly after the first impact of coronav

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.

• Financial markets weekly

CHART OF THE WEEK - Equities are virtually risk-free in the very long-term horizon

Stock markets fluctuates continuously in the mid-term to long-term horizon. Sometimes there is a very strong growth, sometimes there is a very strong decline. Among the major factors that influence this fluctuating belong the macroeconomic dynamics of the global economy...

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FINANCIAL MARKETS WEEKLY - The coronavirus epidemic and weak macro data sent markets down

Fed had a meeting last week. There were no changes in the easy monetary policy in-line with expectations. On Friday there were weak macro data from the Eurozone whose GDP grew in the fourth quarter only by 0.1 % q/q. At the same time, the dynamics of GDP growth in France and...

• Financial markets weekly

CHART OF THE WEEK - Financial repression

The term financial repression describes a situation in which we have been on financial markets recently. It regards negative interest rates, respectively negative yields to maturity on government bonds and exceptionally also corporate bonds, especially in the Eurozone.

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FINANCIAL MARKETS WEEKLY - ECB did not change its monetary policy, world economy growth will remain

ECB had a meeting last week. There were no changes in the monetary policy in-line with expectations.

• Financial markets weekly

CHART OF THE WEEK - Chinese economy is the engine of the whole world economy

Leading indicators are sentiment indicators or economic indices that measure current economic conditions and outlook for upcoming months. According to OECD leading indicators China is clearly the engine of the whole world economy.

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FINANCIAL MARKETS WEEKLY - Positive sentiment continued

The main news of the past week was the signing of the phase one deal between the US and China. Markets sighed, though nervousness and uncertainty about the further development continues. Additional important news was that the global economy grew in 2019 by slowest pace since...

• chart of the week

CHART OF THE WEEK - Structure of corporate debt in the US and the Eurozone is very different

US corporations rely especially on financial markets, i.e. financing via corporate bonds. On the contrary corporations in the Eurozone are heavily dependent on bank loans.

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FINANCIAL MARKETS WEEKLY - Equities continued to grow without any major fundamental news

Past week was relatively weak on new significant fundamental data and news. Despite the fact that the international situation in the Middle East, especially related to Iran, is more than complicated, global stock markets continued to grow by 0.6 % according to MSCI All Country...

• Financial markets weekly

CHART OF THE WEEK - US equities are tremendously overvalued

Within the asset allocation of our investment portfolios we have US equities strongly underweighted against benchmarks.

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FINANCIAL MARKETS WEEKLY - Killing of a prominent Iranian general increased nervousness

With the turn of the year very low volatility was again present on financial markets in the past week. Towards the end of the week, the killing at the direct order of US President Trump of a prominent Iranian general increased nervousness. Crude oil price reacted by 3...

• Financial markets weekly

CHART OF THE WEEK - China’s economic growth in perspective

When we look at Chinese economic growth with the lens of the last 30 years we find out that it is an unbelievable story.

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FINANCIAL MARKETS WEEKLY - Minimum Christmas liquidity and continuation of asset prices growth

Activity on financial markets was impacted by Christmas in the past week as minimum liquidity was present during trading. Despite that markets managed to grow slightly. Global stock markets strengthened by 0.7 % and are up by unprecedented 24 % since the beginning of the year....

• Financial markets weekly

CHART OF THE WEEK - In terms of tax revenues the Slovak Republic belongs to the average of OECD coun

Ratio of tax revenues as a % of GDP belongs to important macroeconomic indicators.

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PF 2020

Wishing you a Merry Christmas with your loved ones and may you have a very prosperous personal and professional year in 2020!

FINANCIAL MARKETS WEEKLY - Positive market sentiment continued also thanks to the election results i

Positive sentiment continued on financial markets during last week and was supported by the elections results in UK where „pro-market“ Conservative Party of Boris Johnson won overwhelmingly. Stock markets increased on average by 1-2 %. At the same time the global...

• Financial markets weekly

CHART OF THE WEEK - Central banks have become the biggest investors into government bonds

According to the International Monetary Fund’s data several central banks have become in their countries margin the biggest investors into government bonds by a wide.

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FINANCIAL MARKETS WEEKLY - Equities growth continued amid trade war negotiations progress

Risk assets led by equities continued to perform well during last week. Low volatility period continued. Fed and ECB meetings did not bring any surprises. Optimism was supported at the end of the week by a strong indication that the phase one deal between the US and China was...

• Financial markets weekly

CHART OF THE WEEK - US dollar performs the function of the world’s main reserve currency by a wide m

According to the International Monetary Fund’s data the US dollar carries out the function of the world number one reserve currency by a wide margin.

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FINANCIAL MARKETS WEEKLY - Minimum volatility again and tensions amid US-China trade negotiations

Minimum volatility of asset prices dominated on financial markets during last week without any major fundamental news. Trade negotiations between the US and China within the ongoing trade war was the key issue again. New macroeconomic data were mixed. German industry...

• Financial markets weekly