Monthly Comments

In October, more signs emerged that indicate a weaker global economy. Even so, markets continued in a positive trend. The strong stock market performance can be partly explained by progress in the China-US trade talks, third quarter results that lived up to expectations and further monetary easing where the Fed lowered the interest rate for the third time this year.

Although several indicators suggest a global economic slowdown, stock markets held up well during September - some markets even reached All Time High including the SAX index in Stockholm as well as our fund.

August started out with falling stock markets, the OMX30 lost over 6% up until the middle of the month. The negative sentiment could be partly explained by escalating trade tensions between China and the US, an increasing risk of a hard Brexit and a general economic turmoil where the German economy is in the centre of attention.

In July, US stock markets rose slightly, while Asian and European markets showed weaker performance. The trade negotiations between the US and China were resumed and then cancelled without any direct progress being made. Instead, the relation between the countries worsened which affected markets negatively.

In June, markets climbed into positive territory again. Expectations of a more dovish FED and ECB as well as future stimulus from China, contributed to the positive sentiment.

During May, financial markets once again showed big movements, this time in a negative direction.

In April, stock markets performed strongly. Some positive statistics, such as better than expected GDP growth in the US, pushed markets higher.

After the big positive movements in the beginning of the year, markets moved more moderately during March. Weaker statistics, especially industrial figures from Europe and lowered growth targets in China, put pressure on markets.

The optimism from January continued in February with rising stock markets worldwide. Progress in the trade talks between Trump and Xi Jinping contributed to the positive sentiment. A postponement of the reintroduction of tariffs meant that the markets in Shanghai and Shenzhen rose sharply.