MARKET VIEW w/e 8th May 2020

MARKET VIEW w/e 8th May 2020 981 980 Realm

The U.K. Stock market

  • The U.K. stock-market was higher this week. Prime Minister Boris Johnson announced a phased exit from lockdown measures with more details expected soon. The Dept. of Health said coronavirus deaths had exceeded 30,000 in the U.K., the worst in Europe.
  • The Bank of England predicted that GDP would slump 14% this year but rebound 15% next year with Governor Andrew Bailey saying the BofE could act again if needed.
  • The European Commission forecasted a sharp recession saying the eurozone economy will likely contract by a record 7.75% in 2020.
  • Despite the negatives stock-markets finished higher on the week on positive news regarding the U.S./China trade negotiations and optimism over the lifting of lockdown restrictions.
  • Both our Breadth indicator and our Momentum indicator stayed negative this week.

UK Market 8th May 2020

The U.S. Stock market

  • The U.S. stock-market was higher this week despite data which showed a record contraction in April for both the manufacturing and services sectors, and jobs data which showed another 3.2 million had filed for unemployment insurance in the previous week.
  • Investors responded positively however to encouraging news surrounding a potential coronavirus treatment and reports that the U.S. and China trade negotiators were expected to meet soon and resume work on the trade agreement.
  • The week finished on a strong note with technology out-performing.
  • Our Breadth indicator stayed negative this week but our Momentum indicator, although still negative, ticked higher for the first time in twelve weeks.

US Market 8th May 2020

The Big Picture 8th May 2020

Market Sentiment 8th May 2020

U.S. Risk Barometer 8th May 2020

Europe Risk Barometer 8th May 2020

Disclaimer:  ‘Where the business has 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.