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MARKET VIEW w/e 10th July 2020

MARKET VIEW w/e 10th July 2020 981 980 Realm

The U.K. Stock market

  • The U.K. stock-market was lower this week as the relentless surge in new coronavirus cases in the U.S. and a few other countries across the world offset hopes about an economic recovery.
  • On Wednesday the U.K. government announced a £30 Billion stimulus package. To tackle a potential unemployment crisis, businesses bringing furloughed employees back to work will receive a bonus.
  • The European Commission lowered its GDP forecasts for 2020 and 2021, saying that the lifting of COVID-19 lockdown measures in some countries was proceeding less swiftly than it had initially predicted.
  • Our Breadth indicator turned negative this week but our Momentum indicator, although still negative, ticked up again.

UK Market 10th July 2020

The U.S. Stock market

  • The U.S. stock-market was higher again this week despite the number of confirmed coronavirus cases in the U.S. topping 3 million.
  • Markets were encouraged by comments from Treasury Secretary Mnuchin on Thursday raising expectations for another coronavirus relief bill by month end.
  • Sentiment was also lifted by comments from James Bullard of the Fed who predicted that unemployment could fall as low as 7% by the end of the year.
  • Our Breadth indicator stayed positive this week as did our Momentum indicator.

US Market 10th July 2020

The Big Picture 10th July 2020

Market Sentiment 10th July 2020

U.S. Risk Barometer 10th July 2020

Europe Risk Barometer 10th July 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.