Weekly Market View from Realm Investment Management. Week ending 24th June 2022.
The US stock-market rallied last week. Prior to that it had fallen for three consecutive weeks. The technology sector had a strong week but energy stocks under-performed and were generally lower.
After hitting it’s highest level since 2012, the US 10-year bond yield fell back last week along with commodities which experienced significant falls in price, including oil, copper, wheat etc. Even so, Fed Chairman Jerome Powell acknowledged that hikes in interest rates sufficient to defeat inflation could potentially tip the US economy into recession. He said “it’s not our intended outcome at all, but it’s certainly a possibility”, adding “we can’t fail on this. We really have to get inflation down”.
In the UK, data from the Office for National Statistics showed inflation hit another 40-year high, up slightly to 9.1% in May.
In Europe, weaker-than-expected Purchasing Managers’ Index (PMI) data indicated that an economic slowdown may be underway.
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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.’