With the positive results towards the end of June, the equity markets also marked a positive first half and a positive second quarter of the year. Business surveys continue to point to continuing upward development. At the same time, problems with supply chains and higher commodity prices have been reflected in rising inflation.The US consumer price index for May reported a 5% increase, which was higher than expected and higher than the previous month. These figures draw increasing attention to the US Federal Reserve's response to the key interest rate and asset purchase program. Although monetary policy was left unchanged at the last meeting, the key interest rate forecast was revised. According to the latest data, interest rates are expected to double in 2023.
Inflation in the euro area is also rising - 2% in April, but according to initial data it is expected to weaken in May. The European Central Bank forecasts the rise in inflation as temporary and kept its monetary policy unchanged at the last meeting.
Inflation rates are also directly linked to economic recovery. There is positive data on the US labor market during the month - unemployment fell to 5.8% in May, supported by the return of staff in the services sector. In the euro area, economic confidence is at record levels, with consumption rising by more than 10% in France in May and 4% in Germany as restrictions loosened.
In China, economic activity is weakening. Growth in industrial production declined in May, while retail sales also slowed from 17.7% in April to 12.4% in May.
In recent months, investors have been encouraged by positive economic data, the growing number of vaccinated people and easing pandemic measures. Despite the general positivism, there is no shortage of topics for the second half of the year to cause volatility. The challenges following the rapid recovery and normalization of consumer demand as well as central bank guidance will be key to financial markets.
Performance of Compass Global Trends
Compass Global Trends ended the month with a share price of BGN 1.6147, which is an increase of 7.24% for the month and an increase of 9.40% compared to the beginning of the year.
Price per unit of the fund for the period from April 1, 2014. until June 30, 2021.
Performance of Compass Euroselect
Compass Euroselect ended the month with a share price of EUR 1,06688, which is an increase of 2.38% for the month and 6.82% compared to the beginning of the year.
Price per unit of the fund for the period from July 16, 2018. until June 30, 2021.
For more detailed information about the performance of Compass Global Trends and Compass Euroselect in June, and about the development of global financial markets and management expectations HERE.
In recent months, investors have been encouraged by positive economic data, the growing number of vaccinated people and easing pandemic measures. Despite the general positivism, there is no shortage of topics for the second half of the year to cause volatility. The challenges following the rapid recovery and normalization of consumer demand as well as central bank guidance will be key to financial markets.
Performance of Compass Global Trends
Compass Global Trends ended the month with a share price of BGN 1.6147, which is an increase of 7.24% for the month and an increase of 9.40% compared to the beginning of the year.
Price per unit of the fund for the period from April 1, 2014. until June 30, 2021.
Performance of Compass Euroselect
Compass Euroselect ended the month with a share price of EUR 1,06688, which is an increase of 2.38% for the month and 6.82% compared to the beginning of the year.
Price per unit of the fund for the period from July 16, 2018. until June 30, 2021.
For more detailed information about the performance of Compass Global Trends and Compass Euroselect in June, and about the development of global financial markets and management expectations HERE.