Blog

26th June 2017

Copia Monday Espresso

 

 

  • In what was described as a landmark moment, MSCI added China “A” shares into its Emerging Market Index, after rejecting them in each of the last three years. The index provider said it would add 222 China “A” large cap stocks from next year. This will represent 0.73% of the index.
  • Brent Crude oil fell below $45 for the first time this year, as investors become increasingly concerned with OPECs ability to meaningfully cut production.
  • As part of Brexit negotiations, the ECB will look to increase their oversight of the euro clearing business, which is currently overseen by the BOE. This would be an unwelcome event for the UK banking industry, with an EY report suggesting if this business does move out of London as many as 83,000 jobs could be affected.
  • Argentina has launched a 100-year bond, with investors more upbeat over the economy that defaulted on $100bn of debt in 2001. The $2.75bn century bond was issued at a slight discount and with a coupon of 7.13%. Argentina is currently rated “B” by the rating agency S&P, with a “stable” outlook.

  • On Tuesday 27 we will see the release of US Consumer confidence, as measured by the University of Michigan’s sentiment index. The expectations are that consumer confidence is to fall to a value of 115 from the previous month’s value of 117.9, as US consumers continue to be less than enthused with the lack of policy action.
  • On Friday 30 June we will have the release of UK Q1 GDP, with expectations of an increase in output of 0.2%.

A score of -1.0 indicates an extremely poor economic outlook, which is accompanied by a high probability of negative returns in risky asset classes like equities. The Risk Barometer tilts our portfolios away from equities during such periods.

A score of 0 indicates a neutral economic outlook with almost equal probability of positive and negative returns in risky asset classes like equities. The Risk Barometer maintains a balance between equities and other asset classes during such periods.

A score of +1.0 indicates an extremely positive economic outlook, which is accompanied by a high probability of positive returns in risky asset classes like equities. The Risk Barometer tilts our portfolios towards equities during such periods.

*as at latest realignment 22/05/17

Notice:

The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated, but is not an indicator of potential maximum loss for other periods or in the future.

Risk Barometer

0

as at latest realignment

    Subscribe

    Subscribe to our blog and get our best content in your inbox.



    Copia Capital Management

    Fleet House, 8-12 New Bridge Street, EC4V 6AL

    Copia Capital Management is a trading name of Novia Financial Plc. Novia Financial Plc is a limited company registered in England & Wales. Register Number: 06467886. Registered office: Cambridge House, Henry St, Bath, Somerset BA1 1JS. Novia Financial Plc is authorised and regulated by the Financial Conduct Authority. Register Number: 481600.

    © 2021 Copia Capital

    Advisers, staff of professional firms and other eligible counterparties

    I work for an advisory / professional firm or other eligible counterparty.

    I will take responsibility for any jurisdictional restrictions that apply to the services described by this website in accordance with applicable law and regulation.

    I have read and accept that Cookies are used on this website.  I understand that a Cookie will show that I have accepted the terms to access this website.

    Customers and prospective customers

    I confirm that I am resident in the UK or other EU Country and I am not a US citizen.

    I have read and accept that Cookies are used on this website.  I understand that a Cookie will show that I have accepted the terms to access this website.


    The content of this website may only be viewed by persons that meet either of the above conditions.  If neither option is applicable please click here which will close this webpage.