Menu 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 Financial Conduct Authority of UK 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 
|
April 23

MARKET MONITOR | April 23

Chart of the Week


GROWTH

We believe the strategic case for risk assets remains favorable, with ongoing support from: 1) economic reopening and normalization, 2) fiscal support, 3) pent-up savings, and 4) historically easy financial conditions. As we move into the post-COVID-19 world, we believe the recovery will be non-linear and the opportunity set highly idiosyncratic.

Source: Goldman Sachs Global Investment Research and GSAM SAS Market Strategy

Market Summary


GLOBAL EQUITIES

US stock markets declined on news of potential tax hikes after the Biden Administration proposed nearly doubling the capital gains tax rate and raising taxes on higher incomes. The S&P 500 Index ended -0.11% lower as taxes overshadowed strong Q1 earnings reports. Similarly, other global equity markets declined as global COVID-19 cases increased. The FTSE 100 Index also sold off as British tobacco companies reacted to the US considering a nicotine cut in cigarettes sold domestically. Read More

COMMODITIES

Oil prices declined last week as global COVID-19 cases rose, heightening concerns for the recovery of consumer demand. Oil also faced headwinds as crude inventories rose by 594k barrels versus expectations of a 4,400k decline. WTI and Brent crude prices fell to $62.14 and $66.11 per barrel, respectively. Copper prices jumped 4.03% on the back of strong activity and global PMI prints. Read More

FIXED INCOME

US rates continued their downward trend last week despite strong data releases, as renewed concerns around virus spread globally may have stoked demand for the haven asset. The 10-Year Treasury yield fell to 1.56%. The 10-Year German bund yield held at -0.26% as the European Central Bank (ECB) emphasized its accommodative and data-dependent policy stance. And in the UK, 10-Year Gilt yields edged down to 0.74% as the government revised down its bond sale plans after the budget deficit undershot official forecasts. Read More

FX

The US dollar was challenged by lower Treasury yields last week as markets anticipate continued dovish commentary from the next Federal Reserve meeting on April 28. Against a basket of peers, the US dollar index fell –0.59%. The Japanese yen benefited from narrower global yield differentials, rising 107.93 USD/JPY. Read More

Economic Summary


INFLATION

In March, UK core CPI rose +1.1% Year-on-Year (YoY), above consensus of 1.0% and up from 0.9% in February. The YoY increase was mostly driven by goods prices which stopped declining in March after four consecutive months in negative territory. In Japan, the national new core CPI (excl. fresh food and energy) accelerated to +0.3% YoY, in line with expectations. Read More

POLICY

The ECB’s governing council kept interest rates unchanged and provided limited news. President Lagarde acknowledged recent positive macro improvement while stressing that uncertainty around the pandemic remains. Read More

PRODUCTION

Strong activity in April was evident in last week’s PMI prints, with services, manufacturing, and composite levels improving even more than consensus expected. The US saw record expansion, with composite output at 62.2, services at 60.4, and manufacturing at 57.2. The UK posted a robust 60.0 composite, with 60.1 in services and 59.1 in manufacturing. Euro area composite PMI increased to 53.7, with 50.3 in services and 63.3 in manufacturing. Read More

JOBS

Initial jobless claims continued to fall, hitting a new low since the beginning of the COVID-19 pandemic at 547k for the week ending April 17. Read More

Style Performance


US Equity Size & Style Returns

MONTH-TO-DATE

Large
3.55%
5.45%
7.40%
Medium
4.49%
5.47%
7.43%
Small
1.98%
2.34%
2.71%
Value
Core
Growth

YEAR-TO-DATE

Large
15.21%
11.68%
8.41%
Medium
18.13%
14.05%
6.82%
Small
23.57%
15.33%
7.72%
Value
Core
Growth

MSCI World Size & Style Returns

MONTH-TO-DATE

Large
2.76%
4.86%
7.11%
Medium
3.48%
4.97%
6.83%
Small
3.42%
4.04%
4.70%
Value
Core
Growth

YEAR-TO-DATE

Large
12.32%
9.88%
7.46%
Medium
14.60%
10.86%
6.62%
Small
16.91%
13.84%
10.71%
Value
Core
Growth

US Fixed Income Maturity and Quality Returns

MONTH-TO-DATE

Government
0.17%
0.46%
3.26%
Corporate
0.38%
0.78%
2.45%
High Yield
0.72%
0.78%
2.14%
Short
Intermed.
Long

YEAR-TO-DATE

Government
-0.41%
-1.31%
-10.70%
Corporate
-0.22%
-1.42%
-6.27%
High Yield
2.96%
1.84%
0.69%
Short
Intermed.
Long

European Fixed Income Maturity and Quality Returns

MONTH-TO-DATE

Government
-0.05%
-0.30%
-0.94%
Corporate
0.06%
0.20%
0.38%
High Yield
0.50%
??????
??????
Short
Intermed.
Long

YEAR-TO-DATE

Government
-0.31%
-1.09%
-6.30%
Corporate
0.14%
-0.24%
-3.11%
High Yield
2.14%
??????
??????
Short
Intermed.
Long

Source: Bloomberg, Barclays and GSAM (as of 04/23/21)

VIEW LESS DISCLOSURE

Key Economic Releases


Monday, Apr 26

Tuesday, Apr 27

Wednesday, Apr 28

Thursday, Apr 29

US Jobless Claims (Cons: 550k, Prior: 547k)
US Q1 GDP (Cons: 6.9%, Prior: 4.3%)
US Core PCE (Cons: 2.4%, Prior: 1.3%)
Japan IP MoM (Cons: -2.0%, Prior: -1.3%)

Friday, Apr 30

Euro area unemp. (Cons: 8.3%, Prior: 8.3%)
Euro area core CPI (Cons: 0.8%, Prior: 0.9%)
Euro area Q1 GDP (Cons: -0.8%, Prior: -0.7%)

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