Following the positive jobs report release in the first week of July and Jay Powell’s words promising rate cuts, the US stock market showed a strong upward trend last week. S&P 500 went up by 1.14% and Dow Jones Industrial Average rose by 1.84%. Meanwhile Eurostoxx 50 went down by 0.78% and FTSE 100 decreased by 0.69%.
In the US, Trump referred to bitcoins and cryptocurrencies as “unregulated crypto assets” on his twitter. Despite harsh criticisms he made, investors expects the overall awareness on cryptocurrencies to be enhanced as the president mentioned the assets directly on his posts. Jeremy Allaire, the CEO of a digital currency exchange company named Circle, tweeted that Crypto now is a presidential/global policy issue. With regards to national budgets, US Treasury secretary Steven Mnuchin warned the government may not be able to pay its bills by the time around September, appealing the need for raising the debt ceiling of $22 trillion. However, it is uncertain whether the congress would reach a compromise over debt limit while there have been divisions over budgeting issues such as funding for a border wall and abortion.
In Europe, Dublin is preparing for a no-deal Brexit and is seeking possibilities of border checks at Northern Irish ports to meet the requirement for checks to secure the EU’s single market. However, the plan is unlikely to be accepted by the Democratic Unionist party which is opposing to the idea of Northern island being treated differently to the other regions of UK.
Last Thursday, the winner of the Flow Traders Investment Competition was announced. Victoria, a women-only dutch group which participated in the competition for the first time this year won the competition with an outstanding M2 of 25.30% and a return of 9.37%. The runner-up was Omega Investments, followed by Next Generation. With regards to the B&R Beurs Investment Competition, Heeren XIII achieved the first place with a M2 of 10.60% and a return of 1.29%.
Written by Ahrim Kim