Flow Traders Investment Competition | Week 20

A dovish tone from the Fed along with rallying government bonds showed growing concerns on a slowdown in the global economy. S&P 500 closed 0.77% lower this week, and Dow Jones Industrial Average declined by 1.15%. Despite a boost in technology sector, the tech-intensive Nasdaq Composite sank by 0.67%. Stoxx 600 and FTSE 100 lost 1.57% and 0.26% respectively.

The US treasury has decided to put more pressure on Iran by imposing sanctions on people and entities related to the Organization of Defensive Innovation and Research, which employed key figures who contributed to Iran’s nuclear weapon development. On the other hand, Trump said he would put a halt on imposing additional sanctions on North Korea. Supposedly, the additional sanctions are the ones on Chinese shipping companies criticized for helping North Korea’s energy imports in violation of the UN sanctions. It is possible that the president decided such sanctions would not help reaching a denuclearization deal with North Korea or ending the trade war with China.

In Europe, Italy endorsed China’s Belt and Road Initiative(BRI) while European Commission labeled China a systemic rival. China has become an important market for fashion industry with high demands in luxury goods which is a key industry of Italy. Also, it is expected that this endorsement would increase Chinese capital inflow, which so far has been significantly low for Italy compared to other European nations such as UK or Germany. France and Belgium on the other hand tries to regulate on China’s investments in Europe, showing concerns over China’s increasing economic influence.

Coming back to the investment competition, Merx lost on Turbo Tax and Alibaba group and Brood also has seen some loses on Continental AG and Wereldhave. On the other hand, K2 capital has more delightful news gaining on Take Two Interactive and a straddle on a Dutch stock exchange. Alpha Investment is continuing its steady move towards top ranking with gains on Aperam this week.

 

Written by Ahrim Kim