The Cambridge Weekly – 26th July 2021

Markets wake up to living with the virus

It has been a week of ups and downs. Last Monday saw sunshine and relaxation as so-called ‘Freedom Day’ COVID restrictions were lifted in England. Investors did not join in the party, though, as major equity indices sold off around the world. Markets recovered most of those losses later into the week, but the episode marked an unwelcome return of volatility. Unfortunately, that market volatility has been matched by uncertainty in the underlying economy, as the spread of the virus continues to pose a threat to global activity

China’s fortunes rebound as property crackdown accelerates

One of China’s top property developers is teetering on the edge. Evergrande Group, a Shenzhen based developer that was the world’s most valuable real estate company in 2018, saw an almighty sell-off in its share price last week, tumbling to a four-year low on Tuesday. What was once deemed to be one of the company’s great strengths is now on the verge of destroying it. A patina of credit quality allowed it to become Asia’s largest private issuer of US$-denominated bonds, built up in a huge spurt from 2015 to 2017.

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This material has been written on behalf of Cambridge Investments Ltd and is for information purposes only and must not be considered as financial advice. We always recommend you seek financial advice before making any financial decision.


Past performance is not a guide to future performance.


The value of your investments can go down as well as up and you may get back less than you originally invested.


Source of financial market data: MorningstarDirect.