Weekly Market View through 19th March 2021

Weekly Market View through 19th March 2021

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UK Stock-Market

  • The UK stock-market ended the week a little lower than the previous week. The Bank of England left interest rates unchanged, at least until it sees “clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably.”
  • Europe restarted the use of AstraZeneca’s vaccine after endorsement from the European Medicines Agency but investors remain concerned about a resurgence in coronavirus infections across the region.
  • Our Breadth indicator stayed positive but our Momentum Indicator, although still positive, ticked down again.

UK Market 19th March 2021
US Stock-Market

  • The US stock-market was lower last week. The early part of the week was muted as investors cautiously waited for the Fed to deliver its latest forecasts for the US economy on Wednesday, at the conclusion of their two-day meeting.
  • As it turned out the Fed said it does not expect to be raising interest rates before the end of 2023. Real GDP growth is now expected to grow 6.5% in 2021 (up from an expectation of 4.2% in December) and inflation is anticipated to rise to 2.4% this year.
  • Following the announcement, the 10-year Treasury yield reached 1.67%, a 14-month high, and stocks fell to the end of the week. At the start of this week the yield remains close to that level. Fed Chairman, Jerome Powell, is due to speak on Tuesday.
  • Our Breadth indicator stayed positive but our Momentum Indicator ticked back down again.

US Market 19th March 2021
The Big Picture 19th March 2021
Market Sentiment 19th March 2021
U.S. Risk Barometer 19th March 2021
Europe Risk Barometer 19th March 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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