The U.K. Stock market
- Despite the latest Middle East tensions markets are still being buoyed by the anticipation of a first stage trade deal between the U.S. and China.
- The Pound fell after Mark Carney, governor of the Bank of England, said there would be a case for cutting interest rates “if evidence builds that weakness in activity could persist”.
- Prime Minister Boris Johnson re-stated that the UK will not extend the so-called transition period.
- Our Breadth indicator stayed positive this week and our Momentum indicator ticked up again.
The U.S. Stock market
- The U.S. stockmarket opened nervously lower on Monday following the death of the Iranian military leader Qassim Suleimani, killed in a U.S. airstrike the previous Friday.
- As tensions seemed to be diminishing at that point, the markets recovered, only to fall again overnight on Tuesday after a rocket attack retaliation from Iran on two U.S. air bases in Iraq.
- Markets recovered again though after it was reported there were no casualties. President Trump stated on Wednesday that “Iran appears to be standing down” and the market continued climbing until a weaker-than-expected jobs report on Friday set it back a little.
- Our Breadth indicator stayed positive and our Momentum indicator ticked higher again.
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.’