June 3, 2019

Chart of the Week: Fathom’s CEI reflects US–China trade tensions

by Fathom Consulting.

Fathom’s proprietary China Exposure Index (CEI) measures the performance of US-listed firms that do business in China, relative to that of their peers. It has fallen sharply amid escalating trade tensions between the US and China. Hopes of a breakthrough in the long-running trade dispute had pushed the index to an eight-month high on 17 April before talks stalled and a new round of tit-for-tat measures was imposed. Firms in the CEI derive between 15% and 85% of their revenues from China, which are now worth less in US dollars given the recent weakening of the renminbi. The earnings of these firms are also vulnerable to sanctions, tariffs and a general slowdown in Chinese economic activity — on balance, they have now underperformed their US-listed peers since the election of Donald Trump in 2016

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The chart in this article has been created using Chartbook on Datastream. The Chartbook was initially created by Fathom Consulting in 2012 and is now a catalogue of approximately 9000 charts, covering over 170 countries, analysing up-to-date macro and financial data. Whether it is a particular topic, country or variable you are interested in charting, the Chartbook has everything you need. To access Chartbook via Datastream search ‘cbook’.

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