FINANCIAL MARKETS WEEKLY - Bond markets correction continued

    • Financial markets weekly

Due to continuing expectations of very strong economic growth this year and continuing concerns about rising inflation, significant selling pressures were evident on global bond markets last week. As a result, the broadest global bond index, Bloomberg Barclays Global Aggregate Bond, lost 1.0%, while the average global bond yield to maturity rose by 0.03 percentage point to 1.11%. The yield to maturity of the most watched bond, 10-year US government bond, further increased by 0.16 percentage point to 1.57%.

FINANCIAL MARKETS WEEKLY - Bond markets correction continued

Stock markets, according to the broadest global stock index MSCI All Country World, recorded a small gain of 0.1%. Value stocks performed well, gaining 1.9% according to the MSCI All Country World Value index. On the other hand, growth stocks according to the MSCI All Country World Growth index declined by 1.8%. NYSE FANG+ index of the big US technology stocks declined even by 4.8% last week.

Commodities did very well again. S&P GSCI global commodity index rose by 3.0%. The price of Brent crude rose another 4.9% to $ 69 a barrel. On the other hand, the price of gold fell another 1.8% to $ 1,699 an ounce.

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

 

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