Let’s take a quick peak at this week’s market indices. S&P500 increased by 1.41%, and NASDAQ by 2.22%. Eurostoxx 50 went up by 0.66%. Dow Jones industrial average fluctuated a bit but ended up making a positive move increasing by 0.11%.
In US, Trump announced that he would reject the UN’s Arms Trade Treaty(ATT) signed by Obama, and that there would be no ratification procedures. The National Rifle Assiciation have been lobbying against the treaty regulating international trades on arms from bombs and rifles to warships and the government finally took their side, mentioning the pact can harm the Second Amendment freedoms–the right to keep and bear arms. Regarding the Iranian sanction exemptions that were applied to major oil exporters and importing countries, the US chose to end them in May. This decision would further press Iran to reurn to the negotiation table of its nuclear weapons and ballistic missiles program. The countries such as China Japan, and South Korea that have been importing Iranian oil are having hard time finding good alternatives, however, and as their requests for waiver extension has turned down, some turbulances in the oil market and crude prices are expected.
In Europe, the never-ending tax rate issue is being discussed ugain. In France, Mr Macron announced that he would cut personal income taxes up to 5bn euros per year and increase pensions to help the low-paid. He is trying to show his effort in improving public services after the gilets jaunes protest, yet the fact that this kind of tax cuts are planned to be financed through increasing corporate taxes and eliminating tax credits brings about strong resonance from business- runners. In Spain, there are five parties cometing for the majority of seats in the parliament in the upcoming national election with no one party dominating others. According to a poll, two leftwing parties have 42.5% of the votes and remaining three rightwing parties 45.6% in total. This made voters face two different and polarized polity proposals. While the rightwing is proposing drastic tax reduction, for example, the leftwing talks about increasing taxation on the rich. Handling national economic slowdown depends on how successful future coalition talks go on and how the far different parties compromise with others.
Next is this week’s investment competition updates. Omega Investments is leading this week and gained on Emmerson and RESTORBIO. Meanwhile, Victoria lost on hugely on Target Corp, which made the group fall by two places. Metrics fund lost on Hamilton Beach Brand and B&S Group. K2 capital gained on Take Two Interactive Software and Paypal holdings and Borsa Valori gained on Boeing Company and Shiseido.
Written by Ahrim Kim