Our services in the selected location:
  • No services available for your region.
Select Location:
Remember my selection
We have been made aware that there are external parties falsely claiming to carry out financial services on behalf of Goldman Sachs (including Goldman Sachs Asset Management International and Goldman Sachs International) in order to market fake investment products and to solicit monetary payments. These external parties may pose as Goldman Sachs through the use of fraudulent communications via email, instant messaging or phone, as well as through the use of fake brochures and other documents containing Goldman Sachs branding and logos.
The FCA has issued warnings about these fraudulent activities which can be found here and here.
It is important to know that any communication you receive from Goldman Sachs would only come from an @gs.com e-mail address and/or be found on the goldmansachs.com website. Further information regarding how you can protect yourself from fraudulent activity online and how you can contact us about this can be found on the Goldman Sachs Security page, available here.
Your browser is out of date. It has known security flaws and may not display all features of this and other websites
MARKET MONITOR 
|
May 15

MARKET MONITOR

Chart of the Week


CORPORATES

In the midst of the COVID-19 outbreak, social responsibility has become a central consideration for corporations. Prior emphasis on share buybacks and dividends has taken a backseat to the health and safety of workers, flexible work schedules, customer accommodations, and community services. Corporate preparedness during this crisis has amplified the evolution of ESG factors as a material business question.

Source: JUST Capital. As of May 7, 2020.

Market Summary


GLOBAL EQUITIES

Global stock markets had another volatile trading week as investors feared for a second wave of virus infections with economies reopening. New clusters of infections in countries where lockdown orders were lifted—China, Korea, and Germany—added to worries. Chairman Powell noted that the path to recovery remained highly uncertain with significant downside risk, emphasizing a potential need for more fiscal policy and stimulus to address liquidity and solvency problems. The S&P 500 and euro STOXX 600 ended lower 2.20% and 3.66%, respectively for the week. Read More

COMMODITIES

Despite a record drop in demand forecast for H2 2020, indications of future US production cuts along with a decline in US crude inventories for the first time in 15 weeks boosted WTI prices, WTI ended higher at $29.43 per barrel (bbl). Similarly, Brent ended higher at $32.50 per bbl. Read More

FIXED INCOME

Last week central bankers for the Federal Reserve (Fed) and Bank of England notably resisted the idea of negative rates in the US and UK, respectively. Chairman Powell’s comments helped turn repo and fed futures positive, after the liquidity market had dipped into negative territory earlier in the week. As the Fed’s Secondary Market Corporate Credit Facility began historic purchases of ETFs, the long end of the US Treasury curve fell. The US 10-year yield ended the week at 0.64%. In Europe, sovereign bonds held relatively steady. Read More

FX

The US dollar continued to rise amid uncertainty around recovery, up 0.76% last week. The British pound struggled as the government reiterated its refusal to extend the Brexit transition period beyond December, increasing the likelihood of a “no-deal” exit from the European Union. Read More

Economic Summary


GROWTH

UK Q1 GDP fell by 2.0% QoQ and contracted by 5.8% MoM in March. Given the UK's relatively late adoption of the lockdown, we expect the economic impact of COVID-19 to be reflected more prominently in Q2 data. Read More

PRODUCTION

US Industrial Production (IP) fell 11.2% in April, the steepest one-month fall on record. The worse-than-expected reading came from a decrease in automobiles and parts production (-71.7%) after already seeing a 30% decline in March. Meanwhile, China IP rose more than consensus expectations, by 3.9% YoY in April, marking the first expansionary reading for 2020. Read More

CONSUMER

April US retail sales fell 16.4% from prior month across all sectors. On a Year-over-Year (YoY) basis, clothing stores fared the worst (-89.3%) while grocers were the only sector showing gains (+13.2%). The University of Michigan’s Consumer Sentiment Index came in at 73.7 for May, up from 71.8 in April. Improvement in sentiment was driven by fiscal stimulus support and widespread price discounts. Read More

JOBS

US weekly initial jobless claims came in at 2.98MM for the week ending May 9. The job losses during COVID-19 totaled ~36.5MM over the last two months. Read More

Style Performance


US Equity Size & Style Returns

MONTH-TO-DATE

Large
-4.84%
-1.40%
1.27%
Medium
-6.02%
-2.59%
1.71%
Small
-9.61%
-4.01%
0.50%
Value
Core
Growth

YEAR-TO-DATE

Large
-22.44%
-10.94%
-0.14%
Medium
-27.25%
-18.76%
-5.93%
Small
-34.67%
-24.25%
-14.28%
Value
Core
Growth

MSCI World Size & Style Returns

MONTH-TO-DATE

Large
-4.77%
-1.98%
0.40%
Medium
-6.47%
-2.41%
0.30%
Small
-7.08%
-3.40%
-0.31%
Value
Core
Growth

YEAR-TO-DATE

Large
-23.54%
-13.20%
-2.52%
Medium
-30.30%
-19.29%
-10.51%
Small
-32.16%
-23.36%
-14.70%
Value
Core
Growth

US Fixed Income Maturity and Quality Returns

MONTH-TO-DATE

Government
0.13%
0.15%
-0.38%
Corporate
0.39%
0.14%
-2.08%
High Yield
-0.26%
0.01%
-0.60%
Short
Intermed.
Long

YEAR-TO-DATE

Government
4.13%
5.69%
22.88%
Corporate
1.09%
0.86%
0.44%
High Yield
-10.17%
-9.04%
-4.70%
Short
Intermed.
Long

European Fixed Income Maturity and Quality Returns

MONTH-TO-DATE

Government
-0.11%
-0.35%
-1.42%
Corporate
-0.23%
-1.09%
-2.86%
High Yield
-1.43%
??????
??????
Short
Intermed.
Long

YEAR-TO-DATE

Government
-0.53%
-0.48%
1.36%
Corporate
-1.97%
-4.23%
-4.68%
High Yield
-10.89%
??????
??????
Short
Intermed.
Long

Source: Bloomberg, Barclays and GSAM (as of 05/15/20)

VIEW LESS DISCLOSURE

Key Economic Releases


Monday, May 18

Japan GDP (Cons: -4.5%, Prior: -7.1%)

Tuesday, May 19

Wednesday, May 20

UK CPI YoY (Cons: 0.9%, Prior: 1.5%)

Thursday, May 21

US Jobless Claims (Cons: 2425k, Prior: 2981k)
US Manuf. PMI (Cons: 38.0, Prior: 36.1)
US Services PMI (Cons: 32.3, Prior: 26.7)

Friday, May 22

VIEW LESS DISCLOSURE

Stay Informed and Be Ahead of the Curve


DOWNLOAD MARKET MONITOR

Access the full PDF to use with your clients

SUBSCRIBE TO MARKET MONITOR

Get the latest Market Monitor delivered to your inbox as soon as it publishes

MANAGE SUBSCRIPTIONS

Past Market Monitors



Related Insights



CONTACT US

For More Information
Funds Client Service