The U.K. Stock market
- The UK stock market was almost unchanged this week.
- The Pound fell to a two year low this as the chances a no-deal Brexit increased with Boris Johnson very likely to be the next prime minister.
- UK retail sales rose 1% month on month in June but public sector net borrowing in the UK rose sharply in June, an unexpected increase to £7.2bn.
- Our Breadth indicator turned stayed neutral and our Momentum indicator ticked up again.
The U.S. Stock market
- The US stock market was lower his week. Investors were mainly focused on whether the Fed would cut interest rates by a quarter or half a percent at its policy setting meeting at the end of the month. Markets kept re-pricing the expectations throughout the week following conflicting remarks from various policy makers. By the end of the week the consensus seemed to be that only one quarter-point cut could be expected and the market fell in response.
- Economic data was strong this week with retail sales for June beating expectations as did manufacturing production.
- With second quarter earnings season underway, most of the large banks have reported better than expected numbers. Netflix shares fell heavily this week on news that subscriptions in the U.S. had declined.
- Our Breadth indicator turned neutral this week but our Momentum indicator ticked up 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.’