Stocks in the UK and Europe have opened flat this morning as investors consider disappointing US unemployment numbers. The data indicates that there were 778,000 initial jobless claims last week which was worse than economists were expecting.
In his review on Wednesday, Chancellor Rishi Sunak introduced controversial spending cuts and warned that the UK economic emergency “has only just begun”. Forecasts are predicting the biggest economic decline in 300 years with the UK economy expected to shrink by 11.3% this year.
The upbeat tone of the market over the last few days receded a little on Wednesday as investors digested recent events and were in no rush to commit ahead of the Thanksgiving break today which means US markets will be closed.
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.’