MARKET VIEW w/e 21st June 2019

MARKET VIEW w/e 21st June 2019 981 980 Realm

The U.K. Stock market

  • The UK stock market was higher this week. There was concern over increasing tensions between the U.S. and Iran with reports that President Trump had approved military strikes before pulling back at the last minute.
  • The Pound rose this week as the BofE voted to leave rates unchanged due to the expectation of weakening economic growth, ongoing trade tensions and the increasing possibility of a no-deal Brexit.
  • Following two more rounds of voting the Conservative party are left with two contenders for the post of Prime Minister. Boris Johnson and Jeremy Hunt will now campaign over the next month before a final vote is expected around 22nd July.
  • Our Breadth indicator remained neutral and our Momentum indicator, although still positive, ticked lower again.

UK Market 21st June 2019

The U.S. Stock market

  • The US stock market was higher. The Fed kept interest rates unchanged but signaled that a rate cut could come as early as July if deemed appropriate. The US dollar fell.
  • Risk assets were also helped by potential positive developments in the US/China trade dispute. President Trump said he had a good phone conversation with the Chinese President and that there would be an extended meeting between them at the G-20 conference which will be held in Japan at the end of this week. Investors are hoping this will help avoid new tariffs on Chinese imports into the US.
  • Oil rallied this week on increasing tensions in the Middle East after news that Iran shot down a U.S. drone. President Trump said he had called off a retaliatory military strike at the last minute.
  • Our Breadth indicator turned back to positive this week but our Momentum indicator, although still positive, ticked lower again.

US Market 21st June 2019

The Big Picture 21st June 2019

Market Sentiment 21st June 2019

U.S. Risk Barometer 21st June 2019

Europe Risk Barometer 21st June 2019

Emerging Markets Risk Barometer 21st June 2019

Disclaimer:  ‘Where the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice. The information contained within this communication is believed to be reliable but Realm Investment Management Limited does not warrant its completeness or accuracy.

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.