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MARKET VIEW w/e 20th March 2020

MARKET VIEW w/e 20th March 2020 981 980 Realm

The U.K. Stock market

  • The U.K. and European markets fell heavily again this week as fears increased over the economic impact of Coronavirus. Markets will most likely need to see evidence that the coronavirus is being contained before there is a convincing rally.
  • The Bank of England announced a further rate cut to 0.1% and an additional £200 billion asset purchasing programme. The ECB launched PEPP, Pandemic Emergency Purchase Programme, and gave the commitment this would be “as much as necessary and for as long as necessary”.
  • Both our Breadth indicator and our Momentum indicator stayed negative this week.

UK Market 20th March 2020

The U.S. Stock market

  • The U.S. stock market had another week of steep falls with the Dow heading back to late 2016 levels. This was despite the Fed announcemnet on the previous Sunday that it would cut rates again and restart a huge program of asset purchasing.
  • The VIX Volatility index hit its highest recorded level early in the week, above that seen in 2008, and trading circuit breakers were triggered to try and restore orderly trading. 
  • The price of oil fell to its lowest level for nearly two decades and many economists predict a recession in the U.S. is imminent.
  • Our Breadth indicator stayed negative and our Momentum indicator ticked lower.

US Market 20th March 2020

The Big Picture 20th March 2020

Market Sentiment 20th March 2020

U.S. Risk Barometer 20th March 2020

Europe Risk Barometer 20th March 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.