Equity Blue

Weekly price performance of the Cap Bonus Certificate from 17.03. until 24.03.2016; Source: Boerse Stuttgart In the twelfth week that was shorter because of the Easter holiday, our exemplary Cap Bonus Certificate on Index EURO STOXX 50 with the ISIN DE000GT6YD37 got slightly weaker. While on Friday, March 18, it closed at EUR 86.44, on the last trading day of the twelfth week it finished trading at a price of EUR 85.48, i.e. by 1.1 % lower. The decrease of the certificate’s price was caused by the falling value of the index EURO STOXX 50, which finished trading at 2986.73 points on Thursday, March 24. The distance between the actual value of the index and the safety barrier is currently 25 %. At the price of EUR 85.48 the certificate offers a yield of slightly more than 4 %, which is approximately 17.8 % if calculated on annual basis. Closing Values of the Index EURO STOXX 50 04.01-24.03.2016 Trading in the twelfth week was a lot influenced by the attacks that happ...

Closing values of the index  EURO STOXX 50; from 04.01.2016 till 18.03.2016  The events in the eleventh week were mainly driven by the meeting of the US Federal Reserves. Markets were expecting further heading of the monetary policy, especially the speed of increasing interest rates. The results of the Wednesday, March 16 meeting confirmed that Fed would not hurry with interest rate increases. This news first brought optimism to the markets. Especially for the US markets the eleventh week was marked by an uninterrupted growth. For the European markets the news on increases of interest rates on a slower pace brought positive reactions too, but a subsequent sharp strengthening of euro against the dollar caused European equities to turn downwards. This was visible especially on Thursday, March 17. Weekly price graph of Cap  Bonus Certificate on Index EURO  STOXX 50; Source: Bourse Stuttgart The index EURO STOXX 50 weakened by approximately 0.5 % ...

The tenth week was as expected very interesting in the capital markets. Undoubtedly the biggest portion of expectations was devoted to Thursday, March 10, when the European Central Bank (“ECB”) held its meeting on further monetary policy steps. The markets were expecting how ECB would decide about the interest rates and how would change its attitude towards further quantitative easing. Graph of closing values of the  Index EURO  STOXX 50;  04.01.-11.03.2016   ECB decided to decrease the key interest rate by further 0.1 % below zero, and thus reaching -0.4 %. This step was widely expected by the markets. A surprise for markets was the decision to increase the monthly volume of purchased assets by additional 20 billion EUR, i.e. by 10 billion EUR more than the markets first expected. The news caused immediately a truly euphoric rally. Values of the key European stock indexes grew by more than 3 %. Later in the afternoon, however, the head of the ECB releas...

The ninth week of this year was marked by optimism on the capital markets. The Western European stocks measured by the stock index EURO STOXX 50 experienced price growth in four days out of five. The closing values of the index returned above the magic value of 3000 points after one month, and for the majority of the week they remained there. On the graph below the ninth’s week development is divided by the black vertical line. The value of the index grew by 3.7 % during the week. How did the positive market development influence the exemplary bonus certificates? Price development of the Index EURO STOXX 50 from 04.01.2016 till 04.03.2016 Rally of the Cap Bonus Certificate The Cap Bonus Certificate on Index EURO STOXX 50 with the ISIN DE000GT6YD37 closed trading at a price of EUR 85.28 on Friday, March 4, which was by 5.7 % higher than last Friday, February 26. The value of the certificate thus grew closer to the maximum possible yield, which is EUR 89. In the graph it...