The UK stock-market was flat this week with large-cap stocks weighed down by a recent strong rally in the Pound.
- On the positive side there were indications of progress in the development of a coronavirus vaccine, further economic stimulus in Europe and optimistic statements from both sides in the US/China trade dispute.
- Our Breadth Indicator stayed negative and our Momentum indicator, although still positive, ticked lower again.
The U.S. Stock market was higher this week.
- Sentiment was lifted early in the week on positive news about potential coronavirus vaccines and after talks to “discuss implementation of the historic Phase One Agreement between the United States and China,” were described as “constructive” by China with the US saying both sides “see progress and are committed to taking the steps necessary to ensure the success of the agreement.”
- During a virtual speech at the Jackson Hole Symposium on Thursday, Fed Chairman Jerome Powell announced a major change in policy that allows inflation to run above the 2% target level to support the economy. This suggests that rates are likely to remain low.
- Our Breadth Indicator turned back to positive this week but our Momentum Indicator, although still positive, ticked down again.
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.’