Along with information on the structure and dynamics of the funds, the review contains the traditional analysis of the current political events and key economic factors that exert an influence on financial markets.
As the specialists of RAM note, last month was marked by a series of important political events.
“The political crises in America and the Middle East had limited consequences, while the pro-European election results in Italy and France were favourably received by the investors. As a result, we can assume that for most investors the glass is half full. Such optimism is largely based on a huge amount of cheap money in the financial markets,” the specialists say.
With regard to France, it is stressed that the results of the parliamentary elections provided carte blanche to the new president of France. Macron's party “Forward Republic” in alliance with the party “Democratic movement” (MoDem) secured the largest majority in the last 15 years, receiving 350 seats out of 577, however, the turnout was the lowest in history. Thus, the election results exaggerate the real support behind Macron’s proposals.
The review also notes that the lack of signs of a steady decline in crude oil reserves in the US had a negative impact on oil prices, and that the slowdown in the growth of property prices in China, as well as the gradual decline in the role of state investment in infrastructure both contributed to the normalization of demand for industrial metals. At the same time, the desire of the Chinese regulator to allow investment companies to invest in physical raw materials can have a favourable impact on the increase in demand for metals in the short term.
Experts pay attention to the increase by a quarter of a percent of the Fed's key interest rate in the US, where the program to reduce the balance sheet was also announced. At the same time, for the justified further raising of the rate, clear signs of inflation and healthy economic growth are necessary. Together with the normalization of the balance sheet and interest rates, one can expect a recovery in the financial markets and an increase in the risk premium.
“Together with the summer solstice, not only the day approached its peak, but also the restoration of the world's largest economy. They say that on the day of the summer solstice, a fern is blossoming and the man that finds this flower gains the treasures and secrets of the world. Financial markets can be deprived of this fabulous atmosphere, but they can still bear fruit,” say financiers.
The review on RAM and the current comments of the specialists can be found
here.
Rietumu Asset Management (RAM) is part of Rietumu Bank, the leading private bank in Latvia. The company provides professional asset management services. RAM’s products and services are intended for a wide range of investors and are designed to meet the specific demands and needs of each customer. In the current market conditions, RAM’s specialists offer their customers the ability to reach an effective yield to risk ratio. DISCLAIMER: This overview (including any attachment (-s)) does not constitute a request, offer, recommendation or invitation of any kind to buy, sell or redeem any financial instruments or to conclude and/or to perform other transactions of any kind. The authors of the information presented in this overview, as well as JSC “Rietumu Asset Management" IMF, registered in the Commercial Register of Republic of Latvia on January 29, 2014, registration number 40103753360, legal address: 7 Vesetas Street, Riga, LV-1013, Latvia, hereinafter referred to as “RAM” , both together and individually, are not liable for possible use of the information presented in this overview, including any direct or indirect damages (including lost profits), as well as any penalties. Evaluations, opinions and forecasts presented in this overview are based solely on the RAM’s specialists' conclusions regarding financial instruments and issuers considered in this overview. While the information contained in this overview is obtained from sources believed to be reliable, the RAM does not guarantee its accuracy and completeness. Any of your investment decision should be fully based on your assessment of your personal financial circumstances and investment objectives. The RAM draws your attention to the fact that transactions in the securities and financial instruments market involve risk and require appropriate knowledge and experience. Eleonora Gailisha Mass Media and Public Relations
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