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    Multi-asset chart of the week

    Multi Asset chart of the week

    18 February 2025 Multi-asset
    Week to 21 February 2025

    The US is increasing pressure on Europe to increase defence spending

    Stephanie Chan, Portfolio Manager, said: “Over the weekend, US Vice President JD Vance explicitly called on European countries to increase defence spending and to contribute more to protecting Ukraine. European defence stocks have continued their recent rally which began around the start of the Trump presidency in the US. US defence companies may also benefit as the US increases pressure on other countries to purchase American-made goods. Trump’s policies will likely continue in the direction of protectionist policies in the US while promising less support for foreign conflicts†.”

    Chart of the week 180225_V8

    Source: Insight Investment and Bloomberg as at 14 February 2025.
    Week to 07 February 2025

    The tariff announcement saw some equity markets experience a significant drawdown. Sentiment improved as deals were quickly agreed.

    Kristin Qi, Portfolio Analyst, said: “Last Friday, a sell off started as markets reacted to rumours of US Tariffs on Mexico and Canada. Over the weekend, Trump confirmed 25% tariffs on Mexico and Canda, and 10% on China. By early afternoon on Monday, Mexican equities were down 5.5%. Canadian and Chinese equities were down 4.0% and 4.2% over the two days move. By Monday lunchtime, negotiations led to a 30-day pause for Mexico and Canada. China then announced a limited retaliation measures. Mexican equities rebounded by 5.8%, Canadian and Chinese equities were also partially recovered†.”

    Chart of the week 11 Dec.png

    Source: Insight Investment and Bloomberg as at 04 February 2025.
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