In the last few years, it has been the least of the largest changes in the stock and commodity markets. This year, however, did not confirm it. On the contrary. Both groups of financial assets grew at a fast pace.
For US stock indices, this year was even the most likely in the last 71 years. However, the stock exchange continued to stagnate in the long run.
What can we expect from the market by the end of the year?
The main first half of the month is behind the positive sounds. Some negative assumptions were not confirmed and economic statistics were on average better, not expected. After a very gloomy end of the holidays, he was booming.
The second half of the month was more in line with uncertainty, which only slowed down price growth. The problems of some European countries have now surfaced, which have to deal with high budget deficits and growing investor distrust.
Ireland and Portugal in particular are in an unseen position with high debts and low economic performance. The debts of these countries will still warm Europe and thus negatively affect stock markets.
New York’s S&P 500 stock index rose nine percent, Frankfurt’s DAX added five percent and London’s FTSE index rose three percent. The PX index, on the other hand, fell by 0.8 percent, when the slc koruna signed on nm.
Sugar and cereal prices rose
In the commodity market, the fight began mainly for agricultural commodities. Sugar prices rose by as much as one-fifth, and most cereals rose by more than 10 percent.
The interest was about precious metals. During the month, gold exceeded twelve-quarters of its historical records, with horses valued at five percent, which was well below other commodities. Compared to gold, Stbro set “only” records for thirty years, but last month it added a respectable 13 percent.
The relationship between economic development and market prices has been very strong in history. During the growth of the economy, stock and commodity prices rose. With the onset of the crisis, however, this relationship has weakened and at present they are not very fatal in terms of market prices due to the development of the economy. How else to explain that while market prices are constantly rising, so are estimates of economic growth?
The most important factor that currently affects the prices of financial assets in the world is the monetary policy of the US central bank. Economic statistics and enterprises are first relegated to the second track.
Traders are constantly speculating that they will need further measures to support the US economy. The launch of the printing press on new dollars by the end of the year seems very likely and positively affected stocks and commodities. The new pensions would be used to buy these financial assets, so their price would increase.
Speculation has an impact on the dollar
These speculations, on the other hand, do not benefit the US dollar, which has lost ground. It fell by 7.3 percent against the euro, reaching a minimum. It also fell sharply on other monks.
The prices of foreign stocks and commodities thus increased more in US dollars than in other currencies. On the euro, the pound and the koruna are much better. The growth of US stock exchanges in other countries was less than half. These factors thus show that rapid growth remains only on the pope and has little in common with the economy.
Although financial markets are growing rapidly, even after the last month, it seems evident that even the diligent efforts of politicians and central banks have not yet been in a hurry. Neither stocks nor commodities can remain untouched by the real economy, and this gap will close soon in the coming months.
He gave the development of whether the economy will grow with the growth of the financial market, and whether it will be the other way around. The growth stimulus in the form of these new incomes will gradually fade away, and if the global economy does not really improve in the coming months, stocks and commodities will have to fall back to real prices.