MARKET VIEW w/e 19th June 2020

MARKET VIEW w/e 19th June 2020 981 980 Realm

The U.K. Stock market

  • Stock-markets in the U.K. and Europe were higher this week. Investors became more optimistic as economies begin to re-open but an uptick in coronavirus cases in U.S. and China is a worry.
  • The Bank of England increased its bond-buying program and left interest rates unchanged at a record low of 0.1%. Minutes from the Monetary Policy Committee meeting suggested a faster economic recovery was now expected.
  • UK inflation slowed to 0.5%, a four-year low, as the price of oil fell. UK and EU negotiators agreed to increase the pace of post-Brexit talks, which have found little agreement so far.
  • Our Breadth indicator stayed neutral this week and our Momentum indicator, although still negative, ticked up again.

UK Market 19th June 2020

The U.S. Stock market

  • Hopes for economic recovery outweighed concerns over new coronavirus outbreaks this week and the U.S. stock-market was higher despite a warning from the International Monetary Fund (IMF) that “the forthcoming June World Economic Outlook Update is expected to show negative growth rates even worse than previously estimated.”
  • U.S. Economic data was mixed this week with a much better than expected surge in retail sales in May, but a less than expected fall in weekly jobless claims. The Fed announced on Monday that it will begin purchasing individual corporate bonds to supplement its bond-buying program.
  • Our Breadth indicator stayed positive this week and our Momentum indicator, although still negative, ticked higher again.

US Market 19th June 2020

The Big Picture 19th June 2020

Market Sentiment 19th June 2020

U.S. Risk Barometer 19th June 2020

Europe Risk Barometer 19th June 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.