- Volatility returned to equity and bond markets as the ECB, BOE and Fed shift towards a more hawkish tone and indicating central bank policy normalization after nine years of unprecedented stimulus.
- China has plans to build battery factories, enough to supply 1.5 million Tesla Models per year, and will take China’s share of global lithium-ion battery production from 55% to 65% by 2021.
- Computer virus ‘Petya’ spread across Europe, wreaking havoc by locking computers and demanding $300 as ransom to release the computers back.
- EU fined Google €2.4bn on violation of antitrust rules, claiming Google abused its dominance of the search engine market to favour its own online shopping service.
- On Friday 7 July we will have the release of UK Industrial Production, with expectations of an increase of 0.4% MoM.
- Friday 7 July will also see the release of US Non-Farm Payroll data with an expectation of 177K and with the unemployment rate holding steady at 4.3%.
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
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.