Monthly Comments

The last month of the year ended with rising stock markets, although they fell slightly during the last trading days. Progress in the US-China trade talks was one of the main reasons for the positive development – a Phase 1 agreement will probably be signed in mid-January. Although that is positive, it seems likely that the countries will continue their negotiations in years to come.

OMX30 traded marginally down in November, while European and US stock markets rose slightly. Positive GDP figures from the US and third quarter numbers from Germany had a positive impact. The US-China trade talks continued during the month where markets are hoping to reach a Phase 1 agreement by December 15th.

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.