On Mondays, we release our Weekly Trader in which we outline key themes driving market sentiment, a review on critical developments within our preferred sectors, equities commentary and market-moving stories to start the week. Our in-house Investment Committee meets on a weekly basis to craft this strategy, aimed at allowing our clients to dynamically position portfolios and to take advantage of market developments.
13/05/19 – Market View: The Week Ahead, CRH, Kingspan, US Tech, Grafton Group, Glanbia
The last 5 trading days saw equities record their worst weekly performance this year. Over in the US, the S&P 500 fell by 2.2% and the DOW by 2.1%. Closer to home the Euro Stoxx 50 declined by 3% and the ISEQ by 3.7%. In the Far East, the Japanese NKI fell 4.8% and Hang Seng Index fell by 5%. Globally, investors have been and continue to sell “growth sensitive” equities as concerns grow about a global trade war. Investors bought up equities in Q1 2019 expecting a trade deal between the US and China. The implementation of 25% tariffs, up from 10%, on $200bn of Chinese imports was certainly not expected – hence the sell off in equities.
- Construction Exposed – Global growth concerns likely weigh on construction activity
- US Tech – Technology names vulnerable to market sell off
- Grafton Group – Reducing as valuations look stretched
- Glanbia – Recent drop unwarranted