World Themes This Week 🌍 Love Triangle Gone Wrong 💔

Table of Contents


1. World Themes This week

With China back in business after a prolonged closure following its Lunar New Year, investors are ready to pile back into the markets and we have a number of sizable topics on the agenda this week.

First off, after a few days leave, Chinese stocks came back with a bang with small-caps outperforming this morning, indicating a slightly more bullish mood. Technical factors suggest there may be more gains in store for China this week as trade volumes return. However, any developments in the trade war will be an overriding factor this week.

Secondly, a wave of dovishness has swept over the markets as central banks the world over scramble to soften their monetary policy outlooks. With India being the first to cut, Brazil, Australia, New Zealand, Sweden and the European Commission are starting to eye up the prospect of an easing in rates. But with an easing in rates comes a sliding currency which could continue to support Dollar gains which have gone through the roof since the start of February.

Thirdly, Europe is sending out recessionary signals left, right and centre with the region racking up its lowest growth rate in four years. Thursday’s GDP announcement is likely to show weakened growth and inflation forecasts dragged down by Germany’s precipitous slide. Ouch!

And finally, oil was slammed with some serious short-selling this morning as the US rig count indicated more signs of oversupply, despite OPEC’s attempts to prop up prices. It looks like the sellers may be the ones to finally break oil’s sideways range.

Get ready for another action-packed week!


2. Love Triangle Gone Wrong?

It would seem that President Trump’s plans to oust Venezuelan President, Nicolas Maduro, has thrown a spanner in the works for an oil-based love triangle between Venezuela, China and Russia which has been going on for some time now. Say what!?

China and Russia have reportedly been keeping the economically crippled petrostate afloat in recent years by lending it billions of Dollars with cheap oil thrown in as a sweet kickback for Presidents Putin and Jinping. Sneaky stuff.

However, now that Maduro is facing a serious challenge to his leadership, the $100bn in loans is under threat of going out the window, should he be toppled by opposition leader, Juan Guaido. To say China and Russia are stressing would be the understatement of the year.

Their concern, however, goes beyond just debt and cheap oil from Venezuela, but alligns more closely with the fear that the USA can just move to appoint another leader in any state is wishes. This would set a dangerous precedent and be a significant threat to their regional influence if this trend were to continue in any of Russia or China’s proxy states. A dangerous precedent indeed.

For now, Guaido has pledged to honour its obligations as on olive branch to its biggest export market, China. However, nothing of the sort has been promised to Russia, and with the situation in Venezuela deteriorating, who knows whether any of these promises will remain in tact at all.

We’ll just have to wait and see how the show unfolds.


2. Company Results Coming Up This Week

Monday – Amcor, Galp Energia, Acacia Mining, Diamond Offshore Drilling Inc., Sparebank, Elevate Credit, Vornado Realty Trust, Norfolk

Tuesday – Sun Pharmaceutical, TUI Group, Shopify, Welltower, Under Armour, Activision Blizzard, Occidental Petroleum, Tripadvisor, Unisys Corp

Wednesday – Citizen Holdings, Deutsche Boerse, Heineken, Hilton Worldwide, CBRE Group, AIG, Cisco Systems, Equinix

Thursday – Credit Suisse, Newcrest Mining, Pirelli, Telstra, Capgemini, Commerzbank, Renault, Astrazeneca, Waste Management

Friday – Allianz, Deere & Co, Bridgestone, SEGRO, Pepsico

Today we are watching…

1.  Amcor (#amcor)

Amcor has had a stellar start to the year, rising over 10% since its December lows as investors pile back into the packaging company. Its positive earnings result today is living proof that investing doesn’t need to be exciting to get results. The company is a stable large-cap company on the ASX200, supplying packaging across virtually every sector of the market. It also maintains excellent returns on its research & development which keeps it ahead of its competition, but continues to reduce its cost structure. Definitely one to watch for all of the long-term investors out there.

2. Elevate Credit (#elvt)

After a dismal year, Elevate Credit, is set to post its earnings today. The share is currently down 39.89% for the year and over 100% off its July high at $10.03. Even though the company’s EPS estimate ($0.10) is 900% higher than the same time last year, analysts are still questioning the company’s high-risk business model which provides online credit solutions to non-prime customers. The share has been seriously battered, but a positive earning surprise send its value up in excess of 10%. High risk stuff though…So watch out!








More Posts
Higher Rate Households 📈

The recent Fed decision to pause rates has left the federal funds rate at its highest level since 2000.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.

Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Invstr app and web services are provided by Invstr Ltd. Invstr+ advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC). Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value. Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying or holding digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Your digital account does not support wallet to wallet transferring of your digital assets (i.e. cryptocurrencies) outside the platform. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC. The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community. The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results. Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such. Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.