MARKET VIEW w/e 23rd August 2019

MARKET VIEW w/e 23rd August 2019 981 980 Realm

The U.K. Stock market

  • On Friday China announced plans to impose new retaliatory tariffs on U.S. imports. Global markets sold off with the UK stock market giving up the gains it had made earlier in the week.
  • Global markets bounced back on Monday though after President Trump announced that China had called and they were going to be “getting back to the table”.
  • At the G7 meeting in France, Boris Johnson received backing from the US President but no new significant concessions from European leaders regarding Brexit.
  • Our Breadth indicator stayed negative and our Momentum indicator turned negative this week.

UK Market 23rd August 2019

The U.S. Stock market

  • The U.S. stock market was lower again last week.
  • China announced tariffs on $75bn of US imports in retaliation for new tariffs announced by the US earlier in the month. As a result markets sold-off on Friday but bounced back this Monday after President Trump said that China called and asked to restart trade talks.
  • At the annual economic symposium in Jackson Hole, Wyoming, Fed Chair Jerome Powell reiterated that the Fed would “act as appropriate” to head off a recession. This followed the publishing of the Minutes of the Federal Open Market Committee (FOMC) July meeting which revealed that just two members voted for a 0.5% rate cut, and several were in favour of keeping rates steady. These differences of opinion may cause a problem for Powell and an upset for the current market expectation that the Fed will cut rates again in September.
  • Our Breadth indicator stayed negative this week and our Momentum indicator ticked down again.

US Market 23rd August 2019

The Big Picture 23rd August 2019

Market Sentiment 23rd August 2019

U.S. Risk Barometer 23rd August 2019

Europe Risk Barometer 23rd August 2019

Emerging Markets Risk Barometer 23rd August 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.