Rising Tensions Between the US and EU | Flow Traders Investment Competition | Week 23

Last week, analysts provided a positive tone on the US economy, as the US Conference Board announced a solid employment growth for March and a strong consumer confidence well above the long term average. Looking at some of the stock indices, the S&P 500 recorded gain for three straight weeks, with this week’s weekly gain of 0.66% and the NASDAQ rallied by 0.74%. FTSE 100 went down by 0.25%, with Brexit delayed stocks from travel and airline firms surged. Euro Stoxx 50 maintained last week’s level, rising 0.05%.

Moving on to global news, there has been rising tensions in trades between the US and EU, as Brussels is considering a payback of $12bn tariffs on US exports. This came after the threats of Trump’s administration to impose extra tariffs on EU products over unfair subsidies—based upon the decision of WTO—granted to Airbus, an European plane maker. The European Commission blamed for illegal tax breaks given to Boeing, an American rival and drafted a list of US products that could be hit with tariffs. As the US-China trade dispute is about to be settled down, president Trump is turning away his eyes towards other trade partners, EU and Japan, advocating for “fair” trade.

In Europe, a price comparison website of Germany, Idealo announced its plan to sue Google for abusing its position as a search engine to promote its own shopping service. Google Germany has already been fined for the same charge in March and said that it made adjustments through providing direct links to other shopping sites. Yet, Idealo insists that the unfair treatment continues. While Brexit has been delayed, investors continue to withdraw from the UK stock funds. The total amount drained since 2016 reached up to $25bn. Meanwhile the Euro appreciated, with the EUR/USD exchange rate breaking through the $1.13 level for the first time.

Finally, we look at the Flow Traders Investment Competition. Next Generation propelled its way up by gaining on turbo’s long on Goldman Sachs and Boeing, becoming the runner-up of this week. B.R.O.O.D. Beleggers closed their position in Walt Disney and gained on holding Continental AG, moving 5 places up. Borsa Valori also made some profits closing positions of CVS Health Corp and Flow Traders, while holding Fast Retailing Co. and Paypal. On the other hand, Hermanszoon Capital lost on AbbVie, Virtu Financial and Argan Inc.

Written by Ahrim Kim