After a year of growth in the stock and commodity markets, a negative mood was shaking. The Pestoe msc is not over, most commodities and the high loss action will not catch up. Do the declines mean the end of the growth period, or just a mole and a healthy correction?
May is usually a place in which historical data indices the worst performances in the whole year on the basis of historical data. It is no different this year.
The catch of funds also decreased
The European debt crisis has plunged into investors’ wallets. It also affected the Czech Republic by the koruna’s decline against most world currencies, the sale of shares on the stock market and the so-called bond year, which will cover the budget deficit.
No one was left behind, so the funds fell. Investors, whose pensions were deposited in cyclical stocks of banks, banking houses and industrial commodities, received the greatest impact.
The stock market lost more than five percent in the last few weeks, and with a large loss it managed to catch up at the end of last week. In the first week of May, the bag lost more than 10 percent and many investors began to sell their positions.
The Czech stock market declined more in the first half of the month, not the stock markets of some countries affected by the debt crisis primarily due to increased risk for foreign investors. The fact of the relatively low debt and the current budget deficit in the context of other countries of the European Union is not the same for the decisive investor.
European stocks weren’t too good at it either. The London Stock Exchange, the largest in Europe, fell 5.7 percent. The stock exchanges of Europe’s most affected countries have lost more than a tenth of their value. The example is the bt panlsk or eck stock market.
Ropa carved about everything
Commodities, which are more likely to be more risky than equities in the markets, were not charged for the decline. This was also confirmed in recent weeks, when the declines compared to the actions were twice as long. In the days of the greatest panic, some commodities and a quarter of the world’s prices were lost at the end of the year.
Even oil, which has a strong position in commodity markets, has fallen by more than a fifth. Even with a positive change in sentiment at the end of last week, oil will not reach single-digit losses.
On the contrary, gold turned out to be the true realm of a turmoil, when panic in the market helped him to gain more than a percent.
For most investors, the previous weeks were not full and only a sparse selection of instruments, and speculation of a decline could be spent. An investor in US dollars helped the rise of this currency, so they mostly recorded losses.
One of the sure ones could be gold
With a very good mood of the last few days, you will have to stay in the stitch even in the coming weeks. The debts of the European countries will not just disappear. The disputed measures that have begun to run some Eurozna countries are the right way to restore the yard in the markets.
I wonder if the situation has not gone too far. If measures are introduced, the debt will slow down, but the total debt will still increase. Debt reduction is not expected. This increases the risks for the financial market, which, according to the year, may not have anticipated the growth we have seen since last spring.
Conversely, the risk of decline is beyond reln. You will have to make a lot of unpopular political decisions to lay the foundations for healthy economic growth. Stock indices and commodity markets should thus get used to mountain performance in the coming months. One of the certainty could be gold in the future.