Blog

3rd June 2019

Monday Espresso

 

 

 

 

On Friday May 31, Trump announced that the US will impose a 5% tariff on all imports from Mexico, starting from June 10, and expressed that the tariff will be raised by 5% every month until October if the illegal immigration from Mexico persists.

On Friday, China manufacturing PMI for May was released, down by 0.7 compared to April, standing at 49.4, reflecting the decreasing market demand, especially from the overseas market. The non-manufacturing PMI remained at 54.3, unchanged from previous four consecutive months.

Also on Friday, the Ministry of Commerce of China made an official statement that it will set up a list of foreign companies as “unreliable entities”, which in many ways severely damage the interests of Chinese companies. Necessary measures will be taken against the firms on the list.

With trade tensions escalating, US Treasury yields fell steeply on Friday due to investor risk aversion. German 10-year bond yield also dropped sharply to a historical low of negative 0.209%.

US trade balance for April will be announced on Thursday June 6, with an expected deficit at $50.7bn.

US unemployment rate will be released on Friday June 7 and is expected at 3.6%.

+0.56*

-1.0     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.

0.0       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.

+1.0   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 27/05/19

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.