The U.K. Stock market
- The UK stock market was almost flat this week. The Bank of England kept rates on hold but indicated that the ongoing uncertainty over Brexit could keep rates lower for longer and that rates could move either higher or lower depending on events.
- The Pound rallied to an eleven week high after EC president Jean-Claude Juncker said on Thursday that he was doing everything he can to get a deal.
- However, after EU officials reviewed ideas for a new deal from Boris Johnson, chief Brexit negotiator for the EU, Michel Barnier, said talks seemed to have gone “backwards”.
- Our Breadth indicator stayed positive and our Momentum indicator, although still negative, ticked up again.
The U.S. Stock market
- The U.S. stock market was surprising quiet in an eventful week. The price of oil spiked on Monday after a drone attack on Saudi Arabian oil facilities the previous weekend. Prices settled back but still finished the week approximately 7% higher.
- The Federal Reserve cut interest rates by 0.25%. It was the second cut this year. Fed Chair Powell reiterated the Fed would “act as appropriate” but descibed the current U.S. economic outlook as “favourable”.
- President Trump responded with a tweet saying the central bank “fails again – no sense, no vision”.
- Our Breadth indicator stayed positive this week and our Momentum indicator ticked higher.
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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.’