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MARKET VIEW w/e 15th May 2020

MARKET VIEW w/e 15th May 2020 981 980 Realm

The U.K. Stock market

  • The U.K. stock-market was lower this week. The Office for National Statistics (ONS) reported that the UK economy shrank by 2.0% in the first quarter, the biggest fall since 2008.
  • A flash estimate from Eurostat, indicated the eurozone economy contracted by a record 3.8% in the same period. Welcome optimism came from the ECB Vice-President Luis de Guindos who said the eurozone economy could rebound by as much as 6% in 2021 although he did add that uncertainty was high.
  • Our Breadth indicator stayed negative this week but our Momentum indicator, although still negative, ticked up for the first time since February.

UK Market 15th May 2020

The U.S. Stock market

  • The U.S. stock-market was lower this week. Federal Reserve Chair Jerome Powell, said that the U.S. economy is “subject to significant downside risks” in the coming months but he also hinted that further stimulus measures, may be forthcoming if needed.
  • Sentiment also took a knock from President Trump who stated that the U.S. might “cut off the whole relationship” with China.
  • Our Breadth indicator stayed negative this week but our Momentum indicator, although still negative, ticked higher again.

US Market 15th May 2020

The Big Picture 15th May 2020

Market Sentiment 15th May 2020

U.S. Risk Barometer 15th May 2020

Europe Risk Barometer 15th 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.