Fundamentals lead markets

Fundamentals lead markets

11/06/2018 | Zurich Ireland

Investments

Will the G7 summit and the long awaited meeting of President Trump and Kim Jong Un in Singapore this week impact the markets, asks Ian Slattery? 

Trading room at Zurich Life Investments Ireland

Trading room at Zurich Life Investments Ireland

Trade pressure remained to the fore of investors’ minds last week as Canada and Mexico confirmed retaliatory measures in response to the US administration’s implementation of steel and aluminium tariffs.

Talks at the G7 summit in Quebec failed to reduce the tensions, with President Trump firing off a number of inflammatory tweets over the weekend aimed at Canadian Prime Minister Justin Trudeau, provoking the ire of key allies on both sides of the Atlantic.

Bond yields (which move inversely to price) in general rose last week reflecting diminishing worries over Italy, more hawkish commentary from the ECB, and strong economic data from the US – where personal and construction spending was stronger and job openings tighter. US equities also proved to be resilient in the face of the political talk, focusing on the underlying fundamentals to finish the week higher.

The global index rose during the week, bringing the year-to-date gain to 4.5%, Europe and Ireland lagged the market, whilst the US and Japan were strong performers. Oil was broadly flat, closing just short of $65 per barrel, and has paused for breath following a choppy few weeks of trading.

Gold was higher, up 0.4% in dollar terms, and closed the week at roughly $1,300 per troy ounce. Copper also gained value during the week, and is now flat year-to-date.

The 10 year US bond yield finished the week at 2.95% from 2.90%. The German equivalent closed at 0.45%. The EUR/USD rate finished at 1.18, while EUR/GBP was at 0.88.

The week ahead

Tuesday 12 June: The long awaited US-North Korea summit takes place in Singapore, which will be closely watched for any progress towards North Korean nuclear disarmament.

Wednesday 13 June: The Federal Reserve meeting for their latest interest rate decision where the consensus expects the rate to rise to 2%.

Thursday 14-15 June: The ECB and BoJ also meet this week for rate decisions, where no changes to the headline numbers are expected.

About: Zurich Investments

The team at Zurich Investments is a long established and highly experienced team of investment managers who manage approximately €22.1bn in investments of which pension assets amount to €10.1bn. Find out more about Zurich Life's funds and investments here.



Filter by category

Select a category

Follow us on

  • you tube
  • face book
  • twitter
  • sound cloud
  • linkedin
  • instagram

Sign Up Here

For promotional offers, news, updates and access to exclusive reports from Zurich

By pressing the submit button you are providing your consent to receive email communications from Zurich Life and other Zurich Group Companies
Indicates required field

...  Sending Answer, please wait ...

Your answer has been successfully submitted. Thank you for your participation.

An error has occurred attempting to submit your answer. Please try again.

Warning: Past performance is not a reliable guide to future performance.
Warning: Benefits may be affected by changes in currency exchange rates.
Warning: The value of your investment may go down as well as up.
Warning: If you invest in these funds you may lose some or all of the money you invest.