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Barrier Capital Protection Certificate on S&P 500 Index®

  • Against steady expectations, the US manufacturing purchasing managers’ index (PMI) for November edged 0.3 points lower and now stands at 55.4 points. Together with initial jobless claims above expectations and weaker durable goods orders, the US economy seems to be losing momentum, and growth figures are becoming more dovish.
  • While the outlook remains robust and additional rate hikes by the US Federal Reserve (Fed) in December 2018 and in 2019 are still justified, market participants have become slightly more cautious following the most recent stock market correction, discounting only two more rate hikes until the end of 2019.
  • In this environment, investors who wish to lock in profits, while keeping their exposure to US companies, may want to consider the JB 100% Barrier Capital Protection Certificate on S&P 500 Index®.
  • The investor profits from a capital guarantee at maturity and participates fully in the positive performance of the underlying from its initial level of 100% (equal to the strike price) up to the knock-in barrier of 120%.
  • If the underlying is quoted at or above 120% of its initial level during the lifetime of the product, the investor receives a cash amount that takes into account the denomination and a rebate of 8% (e.g. 108%).
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