The U.K. Stock market
- Further restrictions were imposed in the U.K. regarding the movement and gathering of citizens, as numbers of confirmed cases of coronavirus surged. Boris Johnson tested positive but said the symptoms were mild and he will continue to lead the government while self-isolating.
- After four weeks of heavy losses, UK and European equities gained this week after unprecedented economic stimulus measures in Europe and U.S.
- Both our Breadth indicator and our Momentum indicator stayed negative this week.
The U.S. Stock market
- Flash U.S. PMI Composite data for March hit an all-time low with the effects of coronavirus on manufacturing and services. The U.S. now has more confirmed cases of COVID-19 than China.
- After reaching three-year-lows early in the week, stocks bounced back with their best three-day-rally since 1931 following final agreement on a $2.2 trillion stimulus package.
- The Fed announced “no limit” on its purchases of Treasuries and also began the purchase of investment-grade corporate bonds.
- Our Breadth indicator stayed negative and our Momentum indicator ticked lower.
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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.’