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MARKET VIEW w/e 12th October 2018

MARKET VIEW w/e 12th October 2018 981 980 Realm

The U.K. Stockmarket

  • U.K. and European stocks followed the U.S. market lower with sharp falls over the week.
  • Investors are worried that economic growth is slowing.
  • Italy in particular is a concern with the Italian government approving deficit targets that defy EU rules. The Italian MIB Index is now in a bear market having fallen more than 20% from the recent high.
  • Our Breadth Indicator stayed negative this week and our Momentum indicator ticked lower again.

UK Market 12th October 2018

The U.S. Stock market

  • The U.S. Stockmarket was sharply lower this week.
  • Monday and Tuesday were quiet days but volatility increased dramatically on Wednesday and Thursday as U.S. stocks fell more than 5%. Global stocks followed suit.
  • There was a recovery on Friday, in the U.S. at least, as the S&P500 and the Russell 2000 (Small-cap) indices reached technical Support levels.
  • Rising interest rates, worries over the forthcoming mid-term elections and ongoing trade tensions with China were cited as contributing factors.
  • Our Breadth indicator stayed negative and our Momentum indicator ticked lower again.

US Market 12th October 2018

The Big Picture 12th October 2018

 

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.