Weekly Market View from Realm Investment Management. Week ending 8th July 2022
Stock markets were generally higher this week. Investors became a little more hopeful that the Fed can successfully fight the inflation battle without causing a recession. Commodity prices have been falling back providing evidence that the Fed are achieving their goals. Even so, released minutes from the last Fed meeting showed that a further hike of “50 or 75 basis points” will be announced at this month’s meeting with Friday’s better-than-expected jobs data increasing that expectation.
Renewed COVID fears in China and concerns that corporate earnings have suffered more than expected are also weighing on market sentiment as second-quarter earnings season kicks-off this coming week in the US.
In the UK, Boris Johnson’s resignation temporarily lifted GBPUSD at the end of the week but the downtrend has resumed in earnest today with the Pound falling to its lowest level versus the Dollar since March 2020. Broad dollar strength is very apparent with the Euro approaching parity.
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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.’