The U.K. Stockmarket
- At the end of the week disappointing GDP data indicated that in the first half of the year the UK economy grew at its slowest level since 2011. The Pound and U.K. stocks fell in response.
- In Italy the government announced plans to lift spending and borrow more, defying Brussels on budget austerity. European stocks fell on fears that Italy is planning to live way beyond its means.
- Our Breadth Indicator stayed negative this week and our Momentum indicator ticked lower again.
The U.S. Stock market
- On Monday new tariffs on Chinese imports came into effect and trade war concerns increased when Chinese officials stated that they would not attend talks in Washington.
- President Trump has said that China is trying to interfere in the U.S. mid-term elections.
- On Wednesday the Fed raised rates for the third time this year. The Technology sector out-performed this week and Financial stocks struggled.
- Our Breadth indicator turned back to negative and our Momentum indicator ticked lower.
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.’