Chinese stocks have spent the last five years really testing the patience of even the most hardcore contrarians. Between the property sector struggles, the crackdown on tech platforms, and the constant friction over chip exports and tariffs, valuations have been pushed down across the board.
Firm Treasury yields could continue to weigh on the metal amid ongoing inflation concerns. Lingering tensions in the Strait of Hormuz could continue to push oil prices up, reinforcing inflation concerns and weighing on bullion.
Markets could remain sensitive to the developments in the Middle East. Tensions remain elevated in the region amid continued incidents in the Strait of Hormuz and a failed attempt for a second round of talks this week, undermining prospects for a near-term resolution.
The UK unemployment rate fell from 5.2% to 4.9%, driven more by increased economic inactivity, particularly as fewer students sought work.
EMLC holds a broad mix of about 507 bonds issued by emerging market governments, all denominated in local currencies such as the Brazilian real, South African rand, Turkish lira, and Mexican peso. Almost the entire portfolio is sovereign debt at roughly 99 percent, so the fund is essentially a pure government credit exposure.
"This is a system shock," says Nigel Green, CEO of deVere Group. "You have a material energy supply disruption and a structural shift toward fragmentation."
The U.S. and its allies have expended a great deal of their arsenal in the past few years. It simply does not matter if there's a peace deal tomorrow, because those weapons must be stockpiled again and then some.
The iShares U.S. Treasury Bond ETF holds only U.S. Treasury notes and bonds across the maturity curve, providing the cleanest expression of flight-to-quality stability in a single ticker. Credit risk is effectively zero because every holding carries the full faith and credit of the U.S. government.
