MARKET VIEW w/e 29th May 2020

MARKET VIEW w/e 29th May 2020 981 980 Realm

The U.K. Stock market

  • Bank of England Governor Andrew Bailey said in a newspaper interview that the UK economy may take longer to recover from the impact of the coronavirus than thought earlier in the month but added that further support would be ready if needed.
  • Christine Legarde, President of the European Central Bank warned that economic activity in the eurozone would shrink 8% to 12% this year.
  • Despite the gloomy forecasts the U.K. stock-market was higher this week as the global economy began to re-open.
  • Our Breadth indicator turned neutral this week and our Momentum indicator, although still negative, ticked up again.

UK Market 29th May 2020

The U.S. Stock market

  • The U.S. stock-market was higher this week largely due to increasing optimism over the lifting of lock-down restrictions and the re-opening of the global economy.
  • Sentiment was also helped by better-than-expected economic data and news of a potential coronavirus vaccine from the company Novavax.
  • President Trump gave a much anticipated news conference on Friday regarding a response to China over their new national security law for Hong Kong, and markets were relieved that he announced no new sanctions on Chinese goods.
  • Our Breadth indicator turned positive this week but our Momentum indicator, although still negative, ticked higher again.

US Market 29th May 2020

The Big Picture 29th May 2020

Market Sentiment 29th May 2020

U.S. Risk Barometer 29th May 2020

Europe Risk Barometer 29th May 2020

Disclaimer:  ‘Where the business has expressed opinions, they are based on current market conditions, they may differ from those of othe 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.