The U.K. Stock market
- Stock-markets in the UK and Europe rose strongly this week as lockdown restrictions were eased.
- European Central Bank (ECB) added EUR 600 Billion to its pandemic emergency program and announced it will use all available instruments to ensure inflation moves toward its goal.
- The deadline to request an extension to the post-Brexit transition period is the end of June but the latest talks between the EU and the UK left both sides still at odds on important topics.
- Our Breadth indicator turned positive this week and our Momentum indicator, although still negative, ticked up again.
The U.S. Stock market
- The U.S. stock-market was strongly higher this week despite the coronavirus worries, ongoing trade tensions between the U.S. and China, and the worst civil unrest for decades.
- Better-than-expected economic data boosted sentiment, and employment data which showed a gain of 2.5 million jobs in May surprised forecasters who were expecting losses.
- Our Breadth indicator stayed positive this week and our Momentum indicator, although still negative, ticked higher again.
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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.’