- After week-long talks between the UK and Japan, Theresa May looks to have secured a formal commitment from Japan on a new trade deal after Brexit occurs. Both parties issued the following joint statement “As the UK exits the EU we will work quickly to establish a new economic partnership between Japan and the UK based on the final terms of the EPA.”
- Kenya’s Supreme Court has nullified the result of last month’s presidential election, as a result of irregularities committed by the election board and ordered a new vote to be held within 60 days. This decision comes after a petition was filed by opposition candidate Raila Odinga.
- The US economy is showing strong signs of resilience, despite lack of policy action in the White House. The latest revised GDP data was stronger than first thought, coming in at 3% annualised for the second quarter of this year, making it the strongest quarter since 2015.
- Gold prices rose to a 10-month high as investors sought out safe haven assets on the back of mounting political tensions over a North Korean missile launch into Pacific waters east of Hokkaido.
- On Wednesday 6 September we will have the release of US Trade Balance of Goods and Services for the month of July, with expectations that it will fall by $44.5bn.
- On Friday 8 September we will have the release of UK Industrial production for the month of July, with market expectations of a 0.2% increase.
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 21/08/17
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.