May 19, 2017 | Investment Advice

International News (Issue 449) – May 19th, 2017

I made mention of Wednesday night’s sell-off and the CISCO Systems disappointing profit report earlier.

Though it might seem like the Trump/Comey situation was the pick of the political news-flow this week, arguably the Brazilian political scandal tops that.

On Thursday night, the Brazilian share-market lost -9% and its currency the Real collapsed a further -9% on press reports its new President (Temer) was involved in the cover up of a payment to the currently imprisoned former speaker of Brazil’s lower house.

The news was a huge shock to investment markets and comes only a year after the removal of the previous President Dilma Rouseff under similarly questionable behavior.

Investors fear the new bout of political turmoil will switch the focus away from much-needed economic reforms.

Have a great weekend.

Jono & Guy

Wednesday Closing Values

 IndexChange%
U.S. S&P 5002365-29-1.2%
London’s FTSE7436+49+0.7%
Japan’s Nikkei19553-409-2.0%
Hang Seng25136+10
China’s Shanghai3090+28+0.9%

 

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