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MARKET VIEW w/e 28th February 2020

MARKET VIEW w/e 28th February 2020 981 980 Realm

The U.K. Stock market

  • Rapidly increasing concerns that the coronavirus could develop into a global pandemic caused a severe decline in equities this week and stock markets, including the UK, entered “correction” territory (a fall of more than 10% from recent peaks).
  • Italy moved quickly to contain Europe’s largest outbreak, and many towns were sealed off. ECB officials in Italy urged governments to take the lead should the impact on economic grpowth deepen.
  • ECB President Christine Lagarde said the ECB was monitoring the outbreak “very carefully”.
  • Our Breadth indicator is negative and our Momentum indicator ticked lower. 

UK Market 28th February 2020

The U.S. Stock market

  • The U.S. stock market suffered its worst weekly decline since the global financial crisis on news that the coronavirus had spread outside of China and growing fear of a global recession.
  • Stock markets fell more than 10% from recent peaks and therefore entered “correction” territory. The VIX Volatility Index spiked to almost 50 on Friday, its highest reading since 2008.
  • The Fed released a statement stating that the outbreak was posing “evolving risks” and promised that they would “act as appropriate to support the economy.”
  • Our Breadth indicator turned negative and our Momentum indicator ticked lower.

US Market 28th February 2020

The Big Picture 28th February 2020

Market Sentiment 28th February 2020

U.S. Risk Barometer 28th February 2020

Europe Risk Barometer 28th February 2020

Emerging Markets Risk Barometer 28th February 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.