Weekly Market View through 15th January 2021

Weekly Market View through 15th January 2021

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UK Stock-Market

  • Better-than-expected trade data from China, the hope of further stimulus in the US from a Biden administration and the rollout of vaccination programs, kept sentiment elevated but the UK stock-market ended the week lower with investors weighing the positives against the rising number of coronavirus cases and tighter lockdown restrictions.
  • Matt Hancock, UK Health Secretary, told Sky News that the UK is ‘on track’ to vaccinate the most vulnerable by the middle of next month. In Europe tighter restrictions were imposed in several countries with lockdowns extended in Germany and Netherlands.
  • On Friday the ONS reported that the UK economy contracted by 2.6% in November. Chancellor Rishi Sunak said the figures “highlight the scale of the challenge we face”. BoE Governor Andrew Bailey said it was too soon to say if more stimulus would be needed.
  • Both our Breadth indicator and Momentum Indicator stayed positive this week.

UK Market 15th January 2021

US Stock-Market

  • House members voted to impeach Donald Trump for inciting an attack on the Capitol. This is the first time in history that a US President has been impeached twice. He denies responsibility for the assault. Twitter and Facebook announced they would be banning the President and others saying they were concerned he was using their platforms to incite violence.
  • Joe Biden, US President-elect revealed details of a major multi-trillion dollar American Rescue Plan. The package will support businesses and includes direct payments of $1400 to families struggling in the current situation. On Wednesday this coming week, Biden will be sworn in as the 46th president of the United States. All fifty US states are on alert after the FBI warned of armed protests.
  • Jerome Powell, Federal Reserve Chair, said there were no plans to raise interest rates and that the Fed would need to see inflation above 2% for some time even before considering a hike.
  • Both our Breadth indicator and Momentum Indicator stayed positive this week.

US Market 15th January 2021

The Big Picture 15th January 2021

Market Sentiment 15th January 2021

U.S. Risk Barometer 15th January 2021

Europe Risk Barometer 15th January 2021

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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