MARKET VIEW w/e 2nd November 2018

MARKET VIEW w/e 2nd November 2018 981 980 Realm

The U.K. Stockmarket

  • The U.K Stockmarket bounced back this week along with European markets.
  • In the U.K. the MPC voted to leave interest rates unchanged but if a good Brexit deal is negotiated the BofE have signalled that interest rate rises would be forthcoming. Mark Carney said he believed that a smooth departure from the EU is “the most likely outcome”.
  • In Europe, data indicated weakening economic growth (third-quarter EU GDP grew at the slowest pace in four years) but this seemed to be trumped by positive trade news.
  • Our Breadth Indicator stayed negative this week and our Momentum indicator ticked lower again.

UK Market 2nd November 2018

The U.S. Stock market

  • The U.S. Stockmarket bounced back this week after the previous week’s heavy decline.
  • Investors were encouraged by positive earnings from the majority of companies reporting and President Trump tweeting that he had a “long and very good” conversation with Chinese President Xi Jinping – they are expected to meet again at the G20 summit later this month.
  • The market retraced on Friday following the release of a strong October jobs report which investors took as increasing the chances of a further rate rise this year.
  • There as also an official denial that the U.S. was preparing a possible trade deal with China.
  • Our Breadth indicator stayed negative and our Momentum indicator ticked lower again.

US Market 2nd November 2018

The Big Picture 2nd November 2018

Market Sentiment 2nd November 2018

U.S. Risk Barometer 2nd November 2018

Europe Risk Barometer 2nd November 2018

Emerging Markets Risk Barometer 2nd November 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.