MARKET VIEW w/e 4th December 2020

MARKET VIEW w/e 4th December 2020

UK Stock-Market

  • As negotiations between the UK and EU continued with time running out, France warned it could veto a deal if the terms didn’t meet its approval. The UK claimed on Thursday that the EU had introduced new demands and had set the talks back, a claime that EU officials denied.
  • The UK became the first country to give authorisation to a coronavirus vaccine, which will hopefully be available within a few days. UK Chancellor Sunak said the approval granted for the vaccine developed byPfizer and BioNTech could mark the start of a rebound from recession.
  • The Composite Purchasing Managers Index (PMI) for the UK was revised higher in November. Even so, it still indicates the sharpest downturn since June.
  • Our Breadth Indicator stayed positive and our Momentum Indicator ticked higher again.

UK Market 4th December 2020

US Stock-Market

  • Markets are still waiting for a decision on the new stimulus bill but by the end of the week there seemed to be some progress in negotiations with a new proposal seemingly attracting support from both sides of the table.
  • Positive manufacturing data from China also helped lift sentiment.
  • US Composite PMI for November was revised higher indicating the largest expansion since March 2015. With the recent risk-on tone, the US dollar continued its decline with money managers increasing their short bets to extreme levels.
  • Our Breadth Indicator stayed positive and our Momentum Indicator ticked up again.

US Market 4th December 2020

The Big Picture 4th December 2020

Market Sentiment 4th December 2020

U.S. Risk Barometer 4th December 2020

Europe Risk Barometer 4th December 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.

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