MARKET VIEW w/e 24th January 2020

MARKET VIEW w/e 24th January 2020 981 980 Realm

The U.K. Stock market

  • The U.K. stock market was lower this week as fears over the outbreak of coronavirus in China outweighed any positives.
  • An IHS Markit survey of purchasing managers showed that U.K. business activity recorded expansion for the first time in five months reducing the likelihood of a rate cut from the Bank of England.
  • Sajid Javid, Chancellor of the Exchequer, told the FT that the U.K. intends to be out of the single market and customs union by the end of the year. Steve Mnuchin, U.S. Treasury Secretary, said the U.S. administration expects to conclude a trade deal with the U.K. this year.
  • Our Breadth indicator stayed positive this week and our Momentum indicator ticked up again.

UK Market 24th January 2020

The U.S. Stock market

  • There was some positive economic news midweek but market gains that followed were given back as the main focus for investors this week, the outbreak of coronavirus in China, took hold again. Markets were sent lower again on Friday following the report of a second case in the U.S.
  • Trade fears may have also played a part after President Trump said he was prepared to implement tariffs on European auto imports.
  • Our Breadth indicator turned neutral this week but our Momentum indicator ticked higher again.

US Market 24th January 2020

The Big Picture 24th January 2020

Market Sentiment 24th January 2020

U.S. Risk Barometer 24th January 2020

Europe Risk Barometer 24th January 2020

Emerging Markets Risk Barometer 24th January 2020

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.