The U.K. Stockmarket
- The UK stock market was lower this week. Theresa May announced she would resign on June 7th.
- Many investors believe this increases the chance of a no-deal exit but even if a more pro-Brexit leader was willing to accept the no-deal scenario, parliament is not likely to support that option and there are many in the Tory party who would find it difficult to accept.
- UK retail sales data was strong.
- Our Breadth indicator stayeded neutral and our Momentum indicator, although still positive, was lower again.
The U.S. Stock market
- The U.S. stock market was lower this week as U.S./China trade negotiations remained the focus for investors. Technology stocks performed worst with worry over the threat to global supply chains and reports that more Chinese tech companies could be blacklisted.
- Minutes from the FOMC meeting in May were released showing there was agreement that, regarding interest rates, a “patient approach” would be adopted “for some time”.
- IHS Markit reported on Thursday that manufacturing activity had declined and was its lowest level in a decade.
- Our Breadth indicator stayed negative this week and our Momentum indicator, although still positive, ticked lower 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.’