Global Caution Weighs on International Small-Cap Stocks
In the second quarter, international small-cap stocks experienced a decline as investors remained cautious about the global interest rate outlook. Despite this, some companies saw their shares rise due to positive news. For instance, Planisware, a French project portfolio management software provider, saw its stock price increase after its successful initial public offering in April.
Britvic, a UK-based soft drink maker, also saw its shares rise after receiving an unsolicited takeover bid from Danish beermaker Carlsberg. However, not all companies were so fortunate. BFF, an Italian lender, saw its stock price fall after a Bank of Italy inspection revealed that it would need to reclassify certain loans, which could impact its capital requirements.
Meanwhile, Money Forward, a Japanese cloud-based financial services provider, reported better-than-expected quarterly earnings, but its stock price still declined due to concerns about margin pressure stemming from higher personnel costs. The company’s funding costs could also be impacted by a “higher for longer” interest rate environment in the US.
It’s essential for investors to carefully consider a fund’s investment objectives, risks, charges, and expenses before investing. Additionally, investors should be aware of the risks associated with international small-cap stocks, including currency fluctuations, liquidity issues, and economic and political uncertainties.
Past performance is not a guarantee of future results, and investors may experience losses or gains depending on market conditions. It’s crucial to stay informed and up-to-date on market developments to make informed investment decisions.
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