MARKET VIEW w/e 21st August 2020

MARKET VIEW w/e 21st August 2020 981 980 Realm

The U.K. Stock market was lower this week.

  • The composite purchasing managers’ index (PMI) for the Eurozone region, considered a good indicator of economic health, fell to a two month low in August of 51.6. Above 50, indicating growth, but below expectations of 55.3.
  • UK PMI Data, showed “Sharpest increase in UK private sector output since October 2013, but the rate of job shedding accelerated in August”.
  • Latest Brexit talks between the UK and the EU ended with no significant breakthroughs.
  • Our Breadth indicator turned negative and our Momentum indicator, although still positive, ticked lower again.

UK Market 21st August 2020

The U.S. Stock market was higher this week.

  • The technology-heavy Nasdaq index out-performed. The S&P 500 reached a new all-time high, exceeding the February peak and marking the fastest recovery ever from a bear market.
  • Minutes from the Federal Reserve’s late July meeting revealed a cautious view of the US economy and indicated they were lowering their forecast for economic growth for the rest of the year.
  • Weekly unemployment claims report rose to 1.1 million, which was disappointing, but continuing jobless claims decreased to 14.84 million, below market forecasts of 15.0 million and the lowest since first week of April.
  • Our Breadth indicator stayed positive this week but our Momentum indicator, although still positive, ticked lower.

US Market 21st August 2020

The Big Picture 21st August 2020

Market Sentiment 21st August 2020

U.S. Risk Barometer 21st August 2020

Europe Risk Barometer 21st August 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.