Black Friday and Cyber Monday are finally over and the results for this week’s Flow Traders Investment Competition just came in. But first, markets globally rebounded this week from the several weeks of losses with the S&P 500 gaining 4.6%, the Eurostoxx 200 Large 1.2% and the AEX over 1%.
In the US the main catalyst for the bull run this week was the comments from the Fed’s Chairman Powell who announced that the interest rates are close to the neutral rates. Which resulted in bonds rallying, the US 10-year treasury yield dropping and the US dollar weakening. Oil prices declined sharply, but ended higher this week. Next week, we can expect the G20 Summit and the Trump-Xi trade talks which might deescalate the current political turmoil, influencing market volatility.
In the Flow Traders Investment Competition, exciting things are happening after 3 weeks of losses across the board, this week 13 out of 40 groups are finally in the green. Porto d’Oro has taken the lead with a 1.74% gain this week, which makes their total return 1.52%, but they should watch out for their volatility. K2 Capital is the current runner-up with a return of 0.47%. Closely followed by B.R.O.O.D. Beleggers. On the other side of the spectrum, Hercules is currently in the last place with a total loss of 2.08% percent, resulting in a low M2 (remember that the benchmark punishes losses more than large gains), but Hercules’ volatility is still relatively low, which means that becoming profitable will propel them to the left side of the ranking. Successful plays are being made in the tech sector: specifically in large online retailers, but also in resources for batteries. Losses are being made in the banking sector and video game publishers. Will they rebound? Find out next week!
Written by Adnaan Willson, Education & Career commissioner