Weekly comment MM Prime TFI - July 2, 2018
The last week of June was a period of significant volatility and declines in the global stock markets. During the whole past week, the German DAX went down by 2.2%, the French CAC40 declined by 1.2% and the British FTSE250 fell by 0.9%. In the US, the NASDAQ deteriorated by 2.4%, while the DJI and the S&P500 dropped by 1.3%. The market stopped to ignore the protectionism policy of Donald Trump. Investors clearly saw that the decisions and the announcements of the American president were not a form of negotiations – these were real actions within a trade war which covered China, EU, or Canada. Concerns related to the global trade war found their negative reflection in the market expectations regarded further condition of the world’s economy. Attention should be also paid to the latest macroeconomic data readings. In the US, the final release of the annualized GDP growth rate for the first quarter of 2018 failed (2% vs 2.2% projected).