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. US stocks gained 0.6 % in the past week and European stocks 0.3 %. Emerging markets continued with above average performance gaining 1.0 %. Fixed-income markets performed also well gaining on average 0.5 % whereas average global bond yield declined by 0.03 % to 1.44 %. Commodities rose strongly, crude oil as well as gold strengthened by around 3 %. Global financial markets has had a great year when almost all major assets thrived. However valuations rose strongly and that is why returns will be probably much weaker in 2020. Hence optimism from the end of this year shall be tempered.
| |
Weekly change |
YTD change |
Value at the week end |
| Dollar index DXY |
-0.8 % |
0.8 % |
96.92 |
| EUR/USD |
0.9 % |
-2.6 % |
1.12 |
| EUR/CZK |
0.3 % |
-0.8 % |
25.51 |
| USD/CZK |
-0.3 % |
1.8 % |
22.87 |
| EUR/PLN |
0.1 % |
-0.7 % |
4.26 |
| USD/PLN |
-0.8 % |
2.2 % |
3.81 |
| Global equities (MSCI All Country World) |
0.7 % |
24.4 % |
|
| US (S&P 500) |
0.6 % |
29.2 % |
3240 |
| Europe (STOXX Europe 600) |
0.3 % |
24.3 % |
|
| Japan (Nikkei) |
0.1 % |
19.1 % |
|
| Emerging Markets (MSCI Emerging Markets) |
1.0 % |
15.8 % |
|
| China (CSI 300) |
0.1 % |
33.6 % |
|
| Czech Republic (PX) |
1.0 % |
13.5 % |
1119 |
| Poland (WIG 30) |
1.2 % |
-4.1 % |
2475 |
| Global bonds (Bloomberg Barclays Global Aggregate Bond) |
0.4 % |
6.6 % |
|
| Global government bonds |
0.4 % |
5.2 % |
|
| Global investment grade corporate bonds |
0.5 % |
11.5 % |
|
| Global speculative grade corporate bonds (high-yield) |
0.4 % |
12.4 % |
|
| Average global bond yield |
-0.03 % |
-0.59 % |
1.44 % |
| US 10 year government bond yield |
-0.04 % |
-0.81 % |
1.88 % |
| Germany 10 year government bond yield |
0.00 % |
-0.50 % |
-0.26 % |
| Czech Republic 10 year government bond yield |
-0.01 % |
-0.34 % |
1.61 % |
| Poland 10 year government bond yield |
-0.01 % |
-0.75 % |
2.08 % |
| Brent crude oil |
3.1 % |
26.7 % |
68.2 |
| Gold |
2.5 % |
18.5 % |
1518 |
Source: Bloomberg
Michal Stupavský
investment strategist of CONSEQ