Insights

December saw negative returns across the risk spectrum

The negative sentiment returned to the financial markets in December. The development led to relatively large and broad-based losses on both risk-free and risk assets.

November saw high returns across the risk spectrum

Almost all financial asset classes delivered high returns in November. This trend is most likely ascribable in part to consumer prices in the U.S. and Europe starting to show lower annual rates of increase in some areas.

From risk aversion to risk appetite in October

October was characterised by risk asset growth, while risk-free assets were more challenged. According to MSCI ACWI, global equities gained 5.1% in October, stated in local currencies, or 4.2% in DKK. At sector level, the returns were positive for all sectors except Real Estate, Consumer Discretionary and Communications. The returns were highest for Energy and Industrials.

Broad-based losses in September – the first signs of systemic stress

Financial assets were dragged by broad-based losses in September, and both risk-free and risk assets were under fire. In September, financial markets also saw the first signs of stress of a more systemic nature. At end-September, Bank of England (BoE) intervened in the financial market, in response to strong market reactions to the publication of the so-called Mini-Budget ahead of the full Budget. A few days later, UK 30Y government bond yields rose by 1.5pp, and the GBP was down by just over 10% vs the USD