Victoria in the lead | Flow Traders Investment Competition | Week 10

The global markets continued their positive streak last week. Although there was a slight drop on Friday, the S&P500 closed with a 2.38% overall increase last week. Moreover, the Dow Jones experienced a rise of 2.21%. In Europe, the Euro Stoxx 50 rose by 0.79% and the AEX rose by 0.95%. The FTSE All World index was up 5.5% last week.

On Friday, US companies were taken by surprise by one of Trump’s tweets. That is, the usually strict on immigration US president announced that he intends to make the visa application process easier for highly skilled workers. The result of this has been uncertainty among tech and financial companies as it seems to contradict this administration’s stance up until now. Furthermore, the government shutdown continued last week and is on track to be the longest one in history. Meanwhile, Trump will not budge on his demand for billions of dollars to build the much-discussed border wall.

In Europe, uncertainty about the Brexit remains. Upcoming Tuesday, UK parliament will vote on the Brexit deal. Jean-Claude Juncker and British prime minister Theresa May are working together to try to prevent a no-deal Brexit. In Germany, Deutsche Bank’s management board has stated that the bonuses will be cut by 10%. Meanwhile, the bank continues to face tumbling revenues and share price. This has led to much criticism as some say that this will only make the lender’s problems worse. In Poland, the Chinese-based company Huawei has come under scrutiny as yet another executive was arrested. Western countries have recently come to suspect that Huawei’s equipment could be used to spy for the Chinese government. However, it is not yet clear whether or not the suspicions that this arrested employee was spying for the Chinese Government are related to the company.

As for the investment competition, Borsa Valori rose 12 places this past week as they experienced large gains from investments in Netflix and Aurora. Also, Metrics Fund rose 10 places, benefiting from their investments in Pershing Square and Hamilton Beach Brands. On the other hand, Next Generation has experienced yet another rough week, falling 11 places. Overall, most groups have not completely recovered from their losses yet though most are seeing a positive change in their returns. All in all, the outlook is positive and it will be interesting to see how the investment groups fare in the coming weeks!

Written by Hazel Alberts