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MARKET VIEW w/e 21st December 2018

MARKET VIEW w/e 21st December 2018 981 980 Realm

The U.K. Stockmarket

  • The U.K. Stockmarket was lower this week.
  • The government instructed UK firms to begin planning for a no-deal scenario and with the ongoing uncertainty over Brexit, the Bank of England kept interest rates on hold this week.
  • Worries over U.S./China relations and uncertainty over global growth also weighed on sentiment.
  • Our Breadth Indicator stayed negative this week and our Momentum indicator ticked lower again.

UK Market 21st December 2018

The U.S. Stock market

  • The U.S. stockmarket was sharply lower this week.
  • The Fed raised rates on Wednesday by 0.25% as expected. Equities sold off after the announcement. Investors had been hoping for signals that rate increases would be paused but the Fed didn’t deliver. The general expectation is now for two further hikes in 2019 rather than three.
  • Other factors that weighed on sentiment this week were a Bloomberg report that President Trump had discussed firing the Fed Chairman Jerome Powell and the prospect of a government shutdown over the President’s demand that Senate pass a bill that included border wall funding.
  • Our Breadth indicator stayed negative and our Momentum indicator ticked lower again.

US Market 21st December 2018

The Big Picture 21st December 2018

Market Sentiment 21st December 2018

U.S. Risk Barometer 21st December 2018

Europe Risk Barometer 21st December 2018

Emerging Markets Risk Barometer 21st December 2018

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.