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    Multi-asset chart of the week

    Multi Asset chart of the week

    13 May 2025 Multi-asset
    Week to 16 May 2025

    The US dollar strengthens after the de-escalation in the US-China trade war

    Stephanie Chan, Portfolio Manager, said: “After a round of talks in Switzerland, the US and China agreed to temporarily lower their respective tariffs for 90 days and to de-escalate the ongoing trade war between the two economies. This will give the two countries time to negotiate a broader trade agreement and comes as an upside surprise to the market. The improved risk sentiment pushed global equities higher. The US dollar strengthened by almost 3 standard deviations following the announcement, reversing some of the US dollar weakness seen since 2 April. The moves push back on the ‘sell America’ narrative that had been gaining traction in recent weeks.”

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    Source: Bloomberg and Insight Investment as at 12 May 2025.
    Week to 02 May 2025

    A majority of US households expect business conditions to worsen

    Stephanie Chan, Portfolio Manager, said: “A University of Michigan survey of US households shows sentiment has deteriorated sharply since Trump’s tariff announcements: 64% expect business conditions to worsen in a year. This is the most negative result in the survey’s history since 1978. The negative sentiment around business conditions may foreshadow worsening hard economic data in the coming weeks and months as uncertainty persists and the impacts from the tariffs start to materialise.”

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    Source: Bloomberg and Insight Investment as at 27 April 2025.
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