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MARKET VIEW w/e 10th May 2019

MARKET VIEW w/e 10th May 2019 981 980 Realm

The U.K. Stockmarket

  • The UK stock market was lower and risk aversion was evident this week as the U.S./China trade dispute took a turn for the worse.
  • The Pound came under pressure for the same reason and renewed Brexit uncertainty with the government and the labour party at an impasse.
  • Data from the ONS showed that the UK economy grew in the first quarter by 0.5% but this may be due to buying forward by businesses in preparation for leaving the EU.
  • Our Breadth indicator stayed positive but our Momentum indicator, although still positive, was lower again.

UK Market 10th May 2019

The U.S. Stock market

  • The U.S. stock market was lower this week.
  • President Trump set the week up with a shock Twitter post on Sunday 5th, announcing that tariffs on $200bn of Chinese imports would rise from 10% to 25% at midnight Thursday. Many saw this as a negotiating tactic but in fact the threat was carried out. China has promised to retaliate but has given no specific details.
  • The increased tensions saw volatility as measured by the VIX at its highest level since late January. However, there was a rally back on Friday after Treasury Secretary Steven Mnuchin stated that negotiations were continuing and progress was being made.
  • Our Breadth indicator turned neutral this week and our Momentum indicator, although still positive, turned down.

US Market 10th May 2019

The Big Picture 10th May 2019

Market Sentiment 10th May 2019

U.S. Risk Barometer 10th May 2019

Europe Risk Barometer 10th May 2019

Emerging Markets Risk Barometer 10th May 2019

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.