The U.K. Stock market
- The U.K. Stock market was higher this week. Major global companies warned that the coronavirus outbreak was having a negative impact on their operations and ECB President Christine Lagarde said the virus was now the main risk to global growth.
- Data showed that industrial production in Germany for December was weaker than expected raising recession concerns once again.
- The January Purchasing Managers’ Index (PMI) for UK services was revised higher.
- Our Breadth indicator turned neutral this week (from negative) and our Momentum indicator ticked back up.
The U.S. Stock market
- The U.S. stock market was higher this week.
- There was a strong start to the week on Monday following news that China had added more financial stimulus and reports that researchers working on a vaccine for the coronavirus were making progress. The virus is currently the main focus for markets and negative news on Friday, regarding the number of new infections in China, set the market back at the end of the week.
- Encouraging economic data and a better-than-expected jobs report were positives this week.
- Our Breadth indicator turned back to neutral this week and our Momentum indicator ticked back up.
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.’