Market update from Copia Capital

March 2022

The infoshot to help kick-start your week

7th March 2022

Last Week:

• President Vladimir Putin banned all Russian residents from transferring foreign currency abroad.
• The Swiss government agreed to enforce European Union sanctions against Russian companies and individuals including President Vladimir Putin and Foreign Minister Sergei Lavrov.
• Federal Reserve Chair Jerome Powell backed a quarter-point interest-rate hike this month to commence a series of increases.
• Commodities extended their massive rally as Russia’s invasion continues to shake global markets and fuel fears of supply crunches. Prices from crude to aluminium and wheat have soared with oil rising to above $112 a barrel on Friday.
• MSCI and FTSE Russell are cutting Russian equities from widely tracked indexes, isolating the stocks from a large segment of the investment-fund industry.
• Volkswagen, BMW and Toyota Motor have idled Russian plants and suspended shipments to the country as part of a broader retreat by global corporate giants.
• UK's FTSE 100 index fell 2.8% in a global selloff sparked by news of a fire near Ukraine's Zaporizhzhia nuclear power plant - the largest of its kind in Europe - following fighting with Russian forces.

Market Pulse

Last Week

YTD

Equities – UK

-6.64%

-4.57%

Equities – Global

-1.91%

-8.67%

Bonds – UK

3.04%

-3.61%

Bonds – Global

0.87%

-2.21%

Coming Up:

• Eurozone GDP (YoY) (Q4) to be released on March 8th, forecasted to be 4.6%.
• China CPI (YoY) to be released on March 9th, forecasted to be 0.8%.
• U.S. CPI (YoY) to be released on March 10th, forecasted to be 7.3%.

Copia’s Risk Barometer:

-0.39*

-1.0A score of -1.0 indicates an extremely poor economic outlook, which is accompanied by a high probability of negative returns in risky asset classes like equities. The Risk Barometer tilts our portfolios away from equities during such periods.

0.0A score of 0 indicates a neutral economic outlook with almost equal probability of positive and negative returns in risky asset classes like equities. The Risk Barometer maintains a balance between equities and other asset classes during such periods.

+1.0A score of +1.0 indicates an extremely positive economic outlook, which is accompanied by a high probability of positive returns in risky asset classes like equities. The Risk Barometer tilts our portfolios towards equities during such periods.

*as at 28/02/2022

Notice:

The performance of each asset class is represented by certain Exchange Traded Funds available to UK investors and expressed in GBP terms selected by Copia Capital Management to represent that asset class, as reported at previous Thursday 4:30pm UK close. Reference to a particular asset class does not represent a recommendation to seek exposure to that asset class. This information is included for comparison purposes for the period stated, but is not an indicator of potential maximum loss for other periods or in the future.