The U.K. Stock market
- The U.K. stock-market was higher this week boosted by positive coronavirus news and despite poor economic data and increasing tensions between U.S. and China.
- UK Retail sales fell 18.1% in April (the biggest fall since records began) and government borrowing hit its highest level on record.
- President Trump warned China that he would react “very strongly” if they went ahead with their plans to impose a new security law in Hong Kong following recent protests.
- Our Breadth indicator stayed negative this week but our Momentum indicator, although still negative, ticked up again.
The U.S. Stock market
- The U.S. stock-market was higher this week continuing the rally off the March low.
- Investors were encouraged by news from Moderna Therapeutics that early tests of a possible coronavirus vaccine showed that antibodies had been produced in a group of volunteers. Despite risks in reopening the economy, all fifty states eased restrictions
- Sentiment was also given a boost by Fed Chair Jerome Powell who said in reference to the slowdown, “there is really no limit to what we can do.” The oil price also continued to gain this week.
- Our Breadth indicator stayed negative this week but our Momentum indicator, although still negative, ticked higher again.
Disclaimer: ‘Where the business has 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.’