May 26, 2017

DNCA's weekly market outlook by Igor de Maack

Management comment

The US economy once again positively surprised investors regarding its pace of growth. Excellent figures from two major retailers (Best Buy and Sears) and bullish unemployment indicators reflected steady resilience among US consumers. On the international front, Donald Trump’s first moves have not yet provided a clear indication of the level of involvement by the US in major conflicts, or his intention of maintaining a balance which would promote peace in the Middle East, which remains the key global region for oil and gas production. The price of oil corrected sharply yesterday on the back of disappointment in the markets, after the OPEC member countries announced measures simply maintaining the oil output quotas already in place.

In Europe, the conditions for further integration are being put in place, or at least evoked, following the first meeting between Angela Merkel and Emmanuel Macron. Initial opinion polls for the forthcoming French legislative elections are predicting that President Macron’s party could win a sufficient number of seats to almost command an absolute majority. It would be impossible to close this letter without a thought for the victims of the Manchester bombing who lost their lives in yet another terrorist attack. This tragic event serves as a reminder of the difficulty of ensuring the safety of citizens, despite draconian security measures. We should therefore seek to constantly protect and cherish this unique, but fragile, life that we lead. Roger Moore, the great English actor who also died this week, would have probably liked to have written "live and let die" into his epitaph.

Igor de Maack, Fund manager and spokesperson at DNCA. This article was finalised in May 26th, 2017.

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The US economy once again positively surprised investors regarding its pace of growth. Excellent figures from two major retailers (Best Buy and Sears) and bullish unemployment indicators reflected steady resilience among US consumers. On the international front, Donald Trump’s first moves have not yet provided a clear indication of the level of...
2017-05-26