Imperium Capital Publication

Viewpoint – May 2017

In another good month for risk assets generally the pattern of performance and market leadership has shifted significantly. Following Donald Trump’s election victory in November the US equity market led the world up sharply, with the ‘reflation trade’ accounting for much of the rise. However growing evidence that winning Congressional approval for big policy initiatives such as tax cuts and reforms, and huge spending on infrastructure will be very difficult has meant the US market has stalled. Although the S&P 500 returned 1.0% in April it has traded sideways for two months. At the same time the USD has weakened against all major currencies on a trade weighted basis.

Weekly Digest – 21 May 2017

  • Pressure builds on Trump and equity markets
  • US dollar index back to pre-election levels
  • Brazilian asset prices fall amid corruption scandal
  • Japan experiences steady Q1 growth
  • Sterling climbs on UK inflation and employment data

Weekly Digest – 14 May 2017

  • Global equities flat as volatility nears record-lows
  • US inflation slows in April
  • Gilts higher after BoE downgrade growth forecast
  • US & China outline 100-day trade plan
  • Merkel’s CDU Party win key state election in Germany

Weekly Digest – 7 May 2017

  • Macron becomes youngest ever elected French President
  • Strong April jobs report points to robust US labour market
  • Eurozone economy grows 0.5% in first quarter
  • Greece agrees bailout terms with creditors
  • Volatile week for commodity prices