In This Week’s Issue…

by Alexander Kalis | Managing Partner & Head of Investments at Milltrust International 

Trade War Fears Escalate, Mexico’s Exemption, Tensions with Russia, and Emerging Markets are World’s Best Investment

Trade War Fears

Sovereign bonds around the world gained ground while stocks suffered fresh losses, with industrials leading the way lower as the latest upheaval in the Trump administration fed into concerns over the possibility of a global trade war.

These tensions, combined with China’s crackdown on financial risks, threaten to undermine a stronger-than-expected start to the year for the world’s second-largest economy.

Investors who are worried over the prospect of a trade war with China may want to stay away from stocks with large revenues in the Asian country. Here are the top 20 companies with the highest revenue exposure to China, according to Goldman Sachs, primarily dominated by technology chip suppliers.

Mexican Relief

The exemption of Mexico from President Trump’s tariffs on steel and aluminum was a lifeline for the renegotiation of the North American Free Trade Agreement, but at the same time Mexican officials fear the tariff issue could be used as a bargaining chip to force concessions in the broader auto sector.

Gazprom Victory

The leaders of the United States, Britain, France, and Germany have jointly condemned Russiafor the poisoning of Sergei Skripal in England last week.

Yet, as Prime Minister Theresa May was spelling out the U.K.’s response on Wednesday, European investors were helping a state-owned Russian company do brisk business in the bond market. Demand was so high for a 750 million-euro ($927 million) bond sale from Moscow-based Gazprom PJSC that the energy giant was able to cut its borrowing costs by knocking about 38 basis points off its yield.

Best Bet is Emerging Markets

Emerging-market stocks are the world’s best investment after February’s rout cheapened valuations, according to Goldman Sachs Asset Management.

Key charts you should look at

Click here to read.

Click here to subscribe.