Market Review from Realm Investment Management – week ending 9th December 2022
US stocks, especially small-caps, ended last week on a soft note after Friday’s producer price (PPI) data showed a rise of 0.4% in November. That’s higher-than-expected inflation data and all eyes will now be on the latest US CPI report tomorrow, Tuesday, in the hope it will indicate some slowing. The UK will also be releasing inflation data this week.
On Wednesday this week, the US Federal Reserve is expected to announce a hike in interest rates of a further 0.5% and investors will be keen to hear the central bank’s forecasts for inflation and interest rates. The Bank of England also has a monetary policy meeting this week; the BoE is expected to announce a 0.5% rate hike on Thursday.
In the UK today, data released by the ONS showed the British exconomy grew 0.5% in October, more than expected by economists.
China remains a possible source of volatility for the markets. Last week, Chinese authorities announced an unexpected unwinding of the country’s pandemic rules. At the start of this week, Chinese hospitals are struggling to contain emerging outbreaks with Covid reportedly spreading rapidly and concerns are rising that a huge surge in patients may overwhelm the healthcare system.
UK Market Chart 9th December 2022
US Market Chart 9th December 2022
US Risk Barometer 9th December 2022
Europe Risk Barometer 9th December 2022
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This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’