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MARKET VIEW w/e 22nd November 2019

MARKET VIEW w/e 22nd November 2019 981 980 Realm

The U.K. Stock market

  • The U.K. stock market was slightly higher this week.
  • The Pound fell after provisional UK PMI (Purchasing Managers’ Index) data for November showed that businesses reported falling output and orders. This was not a surprise with an upcoming general election and continued Brexit uncertainty and signals the expectation of contraction in the coming months. A decline in the Pound helps large cap stocks with large overseas earnings.
  • Markets also had to contend with new uncertainty over the “Phase-one” U.S./China trade deal.
  • Our Breadth indicator turned neutral this week but our Momentum indicator ticked up again.

UK Market 22nd November 2019

The U.S. Stock market

  • The U.S. stock market was slightly lower this week as the “Phase-one” U.S./China trade deal started to look unlikely by end of year with fresh demands being made by both sides. President Trump told reporters that the Chinese were not “stepping up to the level that I want.”
  • Another problem could arise if the President signs a bill supporting human rights in Hong Kong; “strong counter-measures” are being threatened by China if that happens.
  • Minutes of the meeting in October of the Fed’s interest rate-setting committee suggests that another change in interest rates is not likely soon. The market is curently pricing in one more cut next year.
  • Our Breadth indicator turned neutral this week but our Momentum indicator ticked up again.

US Market 22nd November 2019

The Big Picture 22nd November 2019

Market Sentiment 22nd November 2019

U.S. Risk Barometer 22nd November 2019

Europe Risk Barometer 22nd November 2019

Emerging Markets Risk Barometer 22nd November 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.