The U.K. Stock market
- The UK stock market was almost unchanged this week. The week started well following agreement over the previous weekend between the US and Mexico but there was weakness later in the week after the US blamed Iran for attacks on two oil tankers in the Gulf of Oman.
- UK labour data was strong but GDP data for April was weaker than expected.
- The focus this week will be on the Bank of England monetary policy meeting on Thursday where interest rates are expected to be left unchanged due to the ongoing uncertainty over Brexit.
- Our Breadth indicator remained neutral and our Momentum indicator, although still positive, ticked lower again.
The U.S. Stock market
- The US stock market was slightly higher this week. News of a deal between the US and Mexico that avoided trade tariffs being implemented lifted the market early in the week but on Thursday the US announced it thought Iran responsible for attacks in the Gulf of Oman on two oil tankers and the markets ended the week on a down note.
- The oil price had fallen sharply earlier in the week but recovered quickly on the news.
- The Fed FOMC holds its June meeting on Tuesday and Wednesday and this will be the key focus this coming week. Interest rates are expected to be unchanged but the market will be looking for clues that might signal a rate cut in late July.
- Our Breadth indicator stayed negative this week and our Momentum indicator, although still positive, ticked lower again.
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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.’