Welcome to the second to last update for this season of the Investment Competition. Before we get to the rankings, like always, we will take a quick look at what happened in the markets this week. In week 22 the S&P 500 closed on a positive note closing a great 1.58% then it opened on the preceding Monday. The EURO STOXX 600 index did not display as much movement and saw a small loss of -0.20%.
The week started off with Facebook hitting the $1 trillion market capitalization mark for the first time. Shares jumped 4.2% after the US federal court decided to dismiss the Federal Trade Commission antitrust complaint that was filed last year December. The lawsuit was targeted at the acquisitions of Instagram and WhatsApp by Facebook and divestment was a possible outcome of the case. The FTC however failed to prove Facebook holds a monopoly and thus the acquisitions will not be reversed. Facebook is the 6th company in the world to hit the $1 trillion dollar valuation mark and joins other US technology firms like Apple and Amazon.
On Thursday, some drama hit the oil cartel. Just when it seemed like an agreement was reached at an OPEC+ meeting, the United Arab Emirates objected. Before the holdup the group seemed to agree on a production boost of 400,000 barrels per day from August through December. The timing of these tensions is unfortunate as without a deal, existing terms will be enforced which call for oil production to stay at the same level until April next year. This could result in another spike in oil prices with crude oil prices already being over $75 per barrel. The talks will resume today with the oil markets eagerly watching.
The week concluded with the announcement of the U.S. jobs report for June on Friday. The Labor Department reported 850,000 new jobs were created in June. This number exceeded the 700,000 jobs created estimated by economists. The unemployment rate in June slightly increased, unexpectedly, from 5.8% to 5.9%. The 559,000 jobs reported in May were revised up to 574,000, which brings that figure somewhat closer to expectations. The report also shows average hourly wages increased 0.30%, which is below forecasts.
Let’s now turn to our very own Flow Traders Investment Competition where still some action has been happening in the last week. For the past few weeks, we have stopped reporting on movements in the top 3. We understand you’re on the edge of your seat, but you’ll have to wait until the announcement on the 16th during the B&R Beurs Boat Party. CMG Investments and Ares Investment Group were the two groups that climbed the most this week with both gaining 4 spots. B.R.O.O.D. Beleggers, Webb Elliss Investments and INVICTI were the groups that fell the most, losing 3 places in the rankings. CMG Investments managed to pull off the highest return with 6.37 % and Floryn suffered the greatest loss with a return of -2.28%. Congratulations to all who performed well in the competition, and we hope to see you soon for the announcement of the true winners on the 16th!
The final results for the second B&R Beurs Investment Competition are in. Das Kapital takes the victory with an M2 of 13.46% after having dominated the rankings for months. Aurelia finishes second with an M2 of 4.21% and Æthelstan Investments finishes third with a slightly negative M2 of -2.32%. New Rotterdam Investments and iValue Investments did not manage to recover from suffered losses and finished the competition in 4th and 5th place respectively.