Hinweis: Dieser Beitrag ist auch auf Aberdeens "Thinking aloud"-Plattform verfügbar.
Week in Review: Ping Pong
The rally of retaliatory measures between Washington and Beijing continued this week. After the US announced that it would impose 25% levies on $16 billion of Chinese goods from 23 August, China announced matching measures to take effect on the same day.
After so many rounds of tit-for-tat tariffs, perhaps investors are becoming inured to the trade war. That might explain why the latest hostilities had only a short-lived impact on China’s long-suffering equity markets this week. Although the A-share market fell heavily on the announcement, investors soon shrugged off their woes as they focused instead on hopes that Beijing would provide further support for the technology sector. In China’s healthcare sector, which was recently afflicted with a vaccine scandal, beaten-up stocks benefited from bargain-hunting. The CSI 300 index ended the week up 2.5% by Thursday’s close, although it is still down heavily for the year to date.
Penalty shootout
It wasn’t just Beijing in Washington’s sights this week. The Trump administration reimposed economic sanctions on Iran, including a ban on using the US dollar and restrictions on automobile and mineral trading. This was despite strong opposition from the European Union (EU) and the UK, which are committed to preserving the denuclearisation deal struck with Tehran in 2015.
The US also announced that it was imposing fresh sanctions on Russia in the wake of the nerve-agent attack in Salisbury. The UK government, meanwhile, was reported to be preparing to seek the extradition of two Russian suspects.
Neither the Chinese trade war nor the diplomatic froideur had much effect on the US stock market, however. The S&P 500 finished up 0.5%, falling short of the new record high that some had hoped for. During the week, US stock-market volatility, as measured by the CBOE Volatility index or Vix, fell to a six-month low. The Nasdaq outperformed the S&P 500, with technology shares extending their year-to-date dominance.
Tesla manoeuvres leave investors in the dark
One tech stock that burned particularly brightly at the start of the week was electrical-car manufacturer Tesla. Its shares shot up on Tuesday after Elon Musk, the company’s founder, tweeted that he was considering taking the company private and had secured the funding to do so.
As well as a surge in Tesla’s share price, Musk’s musings caused considerable consternation. There was much speculation as to the source of this funding. Some commentators noted that if Musk turned out not to have funding in place, he could be in legal difficulty, as his tweets might amount to market manipulation. The Securities and Exchange Commission was reported to be tightening its scrutiny of the company. By Thursday’s close, doubts about the plan had helped to take the shine off Tesla’s shares, although they still finished ahead of the Nasdaq.
Sterling see-saw
As has been so often the case since June 2016, the FTSE’s strong showing stemmed from a slump in sterling. The pound fell to a nine-month low against the US dollar on Wednesday. The slide was prompted by growing speculation that the UK would leave the EU without a trade deal. This was fuelled by Liam Fox, the international trade secretary, who said that a no-deal scenario was likely. But against that, Dr Fox was able to announce that the island of Taiwan would open its market to British pork.
Across the Channel, continental European markets were volatile this week. The announcement of the US sanctions on Russia caused some concern mid-week, erasing most of the gains made earlier. The FTSE World Europe ex UK index was up by just 0.3% at Thursday’s close.
And finally …
If you’re the kind of person who’s alarmed by a spider on your staircase or a mouse in your house, spare a thought for Mafi Ahokavo of Melbourne, Australia, who had to deal with an animal intruder with substantially more spring in its step.
After being awoken by a banging noise, Mr Ahokavo discovered that a kangaroo had leapt through a closed window. The injured animal rampaged round the house, causing considerable damage, before managing to lock itself in the bathroom. Animal rescuers eventually managed to sedate it before tending to its wounds.
Although it will doubtless roo the day it took up burglary, the marauding marsupial is expected to make a full recovery.
