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Market Update 27 March: Equity rally continues

27. March 2020
  • The market continues to rally with the S&P 500 up 6.2% yesterday in response to the US Senate approving a USD 2 trillion stimulus package, which aims to provide relief for taxpayers and businesses. It needs approval by the House of Representatives before it can be signed by the President, which is expected to take place today.
  • Yesterday the USD depreciated versus most currencies while the NOK continued to appreciate versus both the EUR and USD before weakening slightly again this morning.  
  • Despite the relief in equity markets last week, the overall picture for the global economy remains bleak.
  • US Initial Jobless Claims were announced yesterday and revealed the highest figure ever recorded (see chart below) with 3.3 million new applications for unemployment benefit last week. The previous record was 0.7 million in September 1982.
  • The bond markets rallied yesterday with spreads decreasing sharply both in EM and peripheral Europe. European spreads tightened versus Germany after the ECB started to buy bonds.

jobless claims.png

SKAGEN Funds Summary

  • No material changes.
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Historical returns are no guarantee for future returns. Future returns will depend, inter alia, on market developments, the fund manager's skill, the fund's risk profile and management fees. The return may become negative as a result of negative price developments.