How did the financial markets do?
Equities
- After a difficult month in April, stock markets rebounded in May, followed by little movement in June. Most stock exchanges were higher at the end of June than they were at the beginning of April.
- US stocks posted positive investment results at the end of the quarter. The fall in the value of the US dollar reduced the result in euros.
- European equities also rose in value in the second quarter.
- Listed real estate showed a mixed picture: in America, returns were negative due to a rise in interest rates, while European listed real estate rose in value.
Bonds
- Bond markets were relatively calm, especially in Europe. The European Central Bank cut interest rates due to a decline in inflation. The European economy can benefit from lower rates, as the economic outlook has deteriorated. With lower interest rates, companies can invest more, which is good for the economy.
- European government bonds and loans with a high credit rating increased in value, partly due to lower interest rates.
- Loans to riskier companies also increased in value, resulting in a positive investment result.