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MARKET VIEW w/e 18th January 2019

MARKET VIEW w/e 18th January 2019 981 980 Realm

The U.K. Stockmarket

  • The U.K Stock market was higher this week.
  • On Tuesday MPs rejected Theresa May’s Brexit deal. Jeremy Corbyn tabled a vote of no confidence in the government which the government survived on Wednesday. Theresa May urged MPs to put self-interest aside and “work constructively together”.
  • Markets believe there is little chance that her plan B, to be presented on Monday, will fare any better than the original and that the March 29 deadline will be extended. That general view saw sterling higher last week to two-month highs against the dollar.
  • Our Breadth indicator stayed positive and our Momentum indicator, although still negative, ticked higher again.

UK Market 18th January 2019

The U.S. Stock market

  • The U.S. Stock market was higher again this week continuing a strong start to 2019.
  • Stocks surged when Treasury Secretary Steven Mnuchin proposed that, as a gesture of good will in the trade negotiations with China, tariffs on some Chinese goods should be lowered (the White House later strongly downplayed this suggestion).
  • Sentiment was also lifted by good earnings reports from a number of financial institutions as the latest earnings season began. Most analysts are expecting earnings to grow modestly in the first quarter of this year.
  • Our Breadth indicator turned neutral and our Momentum indicator ticked up for the first time in nearly four months.

US Market 18th January 2019

The Big Picture 18th January 2019

Market Sentiment 18th January 2019

U.S. Risk Barometer 18th January 2019

Europe Risk Barometer 18th January 2019

Emerging Markets Risk Barometer 18th January 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.