A solid US economy with an inflation rate still above the Federal Reserve’s target caused market participants’ interest rate fears to rise again. In addition, US consumption remained stable. Even more favourable inflation data in the eurozone could not counteract this event. Anticipations of interest rate cuts in the USA decreased considerably, and yields on government bonds rose. Corporate bonds fared somewhat better, continuing to benefit from a narrowing of spreads.

With reporting season starting at the end of April, the stock markets, which had got off to a weak start, picked up significantly. Quarterly figures were met with enthusiasm. Above all, Nvidia once again delivered a very good set of figures. Overall, the companies were impressive across the board, including with their outlooks, which often exceeded analysts’ expectations. The favourable corporate results were supported by a cooling US labour market. As a result, spreads for corporate bonds fell further, continuing the trend that began at the start of the year.

In addition to the ECB key interest rate cut of 25 basis points, the outcome of the European elections took centre stage in June and dominated market activity. The Rassemblement National in France and the AfD in Germany made significant gains among voters. As a consequence, French President Macron dissolved parliament. In the course of this move, investors increasingly sought security. The CAC 40 Index lost around 6.4 %, and the spread between German and French government bonds widened significantly. This remained significantly widened until the end of the quarter.

As regards currencies, the US dollar appreciated slightly against the euro and the JPY remained very weak. The South African rand was strong, gaining around 4.8 % against the euro. We remain cautiously optimistic. The US economy remains robust, and the outlook in the eurozone is likely to improve in the second half of the year. However, both the US election and parliamentary elections in France could lead to increased uncertainty.

LiLux Rent performed well in this environment, achieving a gain of 1.88 %.