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News

Trade war opportunities

16.01.2019
Company: Komerční banka, a.s.

Increasing interest rates in the United States and the escalating trade war: Uncertainty on markets stemming from these factors as well as from negotiations about Brexit and the situation concerning Italian public finances resulted in a sharp increase in volatility. At the end of 2018, there were significant sell-offs, and stock indices closed the year in the red.

An expected recession in the United States will send stock markets down: After a short-term recovery of stock indices, this year should eventually end up failing. We believe the Prague PX Index has the potential to overcome the major world indices thanks to its sectoral composition.

The trade war continues to be a significant influence on equity markets: For all of last year, the escalation of the trade war damaged equity markets. At the beginning of 2019, news of the successful meeting between US and Chinese representatives helped markets to recover.

The car industry, miners, and steel and aluminium producers suffered the most from the trade war: Producers of steel and aluminium have suffered due to the imposed tariffs, whereas investors are losing faith in the car industry as the threat of tariffs remains.

Interesting investment stock tips: Aperam, ArcelorMittal, Constellium, Faurecia, Renault, Volkswagen

Tags: Economics | Finance |

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