The infoshot to help kick-start your week
Last Week
- Chinese equities extended a notable recovery, with the CSI 300 Index rising as much as 6.5% on Monday, the largest increase since 2015. This follows a significant decline of over 45% from its 2021 peak through mid-September. The index now appears poised to enter a technical bull market, as investors sought to capitalise on opportunities ahead of a week-long holiday in China. In commodities, iron ore prices rose alongside optimism surrounding China’s economic outlook, while Japanese equities declined. This divergence occurred after Shigeru Ishiba unexpectedly won the ruling party’s leadership race, surprising investors who had anticipated additional monetary stimulus under his rival.
- The French government is reportedly considering new corporate tax measures as part of its efforts to reduce the country’s budget deficit, according to a report by Le Monde. The Ministry of Finance is exploring the possibility of introducing a temporary 8.5% levy on companies with annual revenues exceeding €1 billion. Additionally, the government is assessing an 8% tax on stock buybacks, based on the nominal capital reduction from such transactions. Le Monde also reported that personal income taxes would remain unchanged, while the government plans cuts in public spending. Michel Barnier, who was appointed as prime minister earlier this month by President Emmanuel Macron, is expected to outline his objectives in a policy address to parliament on Tuesday. The 2025 budget bill is anticipated to be presented by around October 9.
- Barry Norris, founder and Chief Investment Officer of UK hedge fund Argonaut Capital Partners, has expressed skepticism about the belief that a reduction in interest rates by the Federal Reserve will automatically boost the green energy transition. Norris noted that while some within the industry had previously attributed challenges to high interest rates, the recent easing of rates has not led to an improvement in market sentiment. Instead, he highlighted that industry players are now seeking additional government subsidies. This perspective contrasts with the more optimistic outlook held by some on Wall Street. Analysts at Citigroup and Goldman Sachs, for example, have suggested that a turning point has been reached for green stocks.
Market Pulse
Coming Up
- UK GDP, Monday 30th September 2024 at 7:00am
- US Fed Chair Powell Speech, Monday 30th September 2024 at 6:55pm
- US Employment Data, Friday 4th October 2024 at 1:30pm
Notice:
For professional advisers only, Copia does not provide financial advice, and the contents of this document should not be taken as such. The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated, but is not an indicator of potential maximum loss for other periods or in the future.Open document settingsOpen publish panel
