The Takeaway This Week, is China
18 June 2023
Really chuffed with performance this week, solidly outperforming both the FTSE100 and the average user on my investing platform.
This is mostly on the back of news that the Chinese administration will look to stimulate its slowing economy. The Chinese central bank unexpectedly cut short term interest rates to help drive a recovery. They additionally signalled further easing would be ahead of required.
This saw commodities such as iron ore jump, bringing positive momentum to miners, hence the rallies in Glencore and Antofagasta. Additionally, luxury stocks such as Moncler saw a boost from the China news which I added a few weeks ago on some price weakness.
Really happy as this is pretty much my macro thesis playing out on these trades. Added them on signs of weakness when, in my opinion, stimulus from China was inevitable.
Interestingly on Petrobras, there was an ex-dividend date this week. Given it issues such large dividends, there is usually selling pressure after these dates as people lock in the dividend and exit. The stock dropped around -6% the following day but recovered all that performance in the week. First time I’ve seen it recover so quick.