Frankfurt Scenes like from a dark science fiction film: people with face masks and the disinfectant spray always at hand, closed restaurants and theaters, deserted streets in the evening. In addition, a global economy in recession, corporate profits collapse, the number of bankruptcies is rising. The corona crisis has changed the world in ways we could not have imagined a year ago.
However, little of this can be seen when looking at the financial markets. The bottom line is that Corona has hardly left any negative marks on the European stock exchanges, or on risky corporate bonds. US stocks and the global stock market index for emerging markets have even risen significantly. Risk aversion can only be recognized in isolated cases. An overview of the development of various asset classes over the past twelve months – and the respective prospects:
The deep slump from mid-February to mid-March was followed by a rapid recovery. It was primarily driven by the aid pacts of the states and central banks. In July, the EU countries launched an economic stimulus package worth 750 billion euros; the individual countries had already put together their own packages. The European Central Bank (ECB) launched an emergency bond purchase program worth 750 billion euros in March, which it later increased to 1.35 trillion euros. ECB boss Christine Lagarde has more or less directly announced a further increase for December.
At first, Europe‘s stock exchanges were unable to reach the level of almost a year ago because they are strongly characterized by cyclical values that are particularly hard hit by the economic slump. But that broke out last Monday with the news of a breakthrough in vaccine development by the Mainz biotech company Biontech and its US partner Pfizer changed.
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