2 Feb 2015
January Asset Performance – DB
FXStreet (Barcelona) - The Research Team at Deutsche Bank review a wild and volatile January, noting that Asset performance was a mixed bag partly distorted by the large moves in FX markets.
Key Quotes
“Indeed the Dollar had another good month with the DXY index (+5%) up for its 7th consecutive month - the longest stretch of gains since the Bretton Woods collapse in 1971.”
“The JPY and the CHF were the only two G10 currencies that appreciated against the Dollar in January - the former explaining the outperformance of the Nikkei (in Dollar terms) against other DM equities in January. This is interesting as the big macro Japan trade has been quiet this month.”
“The EUR and GBP were down around 7% and 4% against the Greenback in January.”
“The 'January effect' lost its magic for the second consecutive year with S&P 500 finishing the month about 3% lower. Note that Greek equities were down -12.5% and -18.3% in Euro and USD terms.”
“Fixed income had a good month generally across the board with Treasuries, Bunds, and Gilts up +3.0%, +2.2% and +4.9% respectively. Although similar to trends elsewhere, EUR and GBP denominated assets underperformed on a currency adjusted basis given the Dollar strength. Another good example to show here is perhaps in Credit markets.”
“US HY and EU HY were up around +0.6% and +0.9% respectively in local currency terms but on a Dollar basis EU HY finished the month much lower at around -6%."
“Turning to commodities, Gold (+8%) and Silver (+10%) are leading the way higher perhaps a reflection of reflationary and flight to quality trades being put on. Not all commodities were higher though as growth proxies such as Brent (-8%), WTI (-9%), and Copper (-12%) all suffered which is perhaps a sign of where global growth is feared to be headed.”
Key Quotes
“Indeed the Dollar had another good month with the DXY index (+5%) up for its 7th consecutive month - the longest stretch of gains since the Bretton Woods collapse in 1971.”
“The JPY and the CHF were the only two G10 currencies that appreciated against the Dollar in January - the former explaining the outperformance of the Nikkei (in Dollar terms) against other DM equities in January. This is interesting as the big macro Japan trade has been quiet this month.”
“The EUR and GBP were down around 7% and 4% against the Greenback in January.”
“The 'January effect' lost its magic for the second consecutive year with S&P 500 finishing the month about 3% lower. Note that Greek equities were down -12.5% and -18.3% in Euro and USD terms.”
“Fixed income had a good month generally across the board with Treasuries, Bunds, and Gilts up +3.0%, +2.2% and +4.9% respectively. Although similar to trends elsewhere, EUR and GBP denominated assets underperformed on a currency adjusted basis given the Dollar strength. Another good example to show here is perhaps in Credit markets.”
“US HY and EU HY were up around +0.6% and +0.9% respectively in local currency terms but on a Dollar basis EU HY finished the month much lower at around -6%."
“Turning to commodities, Gold (+8%) and Silver (+10%) are leading the way higher perhaps a reflection of reflationary and flight to quality trades being put on. Not all commodities were higher though as growth proxies such as Brent (-8%), WTI (-9%), and Copper (-12%) all suffered which is perhaps a sign of where global growth is feared to be headed.”