Weekly Market View through 22nd January 2021

Weekly Market View through 22nd January 2021

UK Stock-Market

  • Markets will stay focused on Joe Biden’s attempt to push through his $1.9 trillion stimulus package. There remains opposition from some Republicans. Boris Johnson said he looked forward to “strengthening the partnership between our countries.”
  • Data from the ONS showed that UK inflation doubled in December, climbing to 0.6% from 0.3% in November, but still below the BofE 2% target.
  • Eurozone data released on Friday shows that economic activity contracted markedly in January. Markit’s flash composite PMI fell to 47.5, from 49.1 previous month, reflecting the affect of further lockdown restrictions imposed across the region. The ECB kept interest rates unchanged but said it is ready to take further action if it is considered necessary.
  • Investors are also closely monitoring the spread of the new coronavirus strains amid concerns that it might derail global recovery. The International Monetary Fund (IMF) is due to release an update and its economic projections this week. The UK government is considering tighter controls at its borders to slow the spread of the virus.
  • Both our Breadth indicator and Momentum Indicator stayed positive this week.

UK Market 22nd January 2021

US Stock-Market

  • Optimism over coronavirus vaccination programs and strong data from China lifted sentiment at the start of the week.
  • Joe Biden became the 46th President of the United States and in his inaugural speech he called on Americans to come together and stated his intention to end the “uncivil war”, the first step in his attempt to bring Americans back together after the recent political and social upheaval.
  • Biden will begin work on the $1.9 trillion coronavirus stimulus package straight away. Investors will be closely monitoring the response from Republicans.
  • Major companies, including tech, are due to report earnings this coming week.
  • Both our Breadth indicator and Momentum Indicator stayed positive this week.

US Market 22nd January 2021

The Big Picture 22nd January 2021

Market Sentiment 22nd January 2021

U.S. Risk Barometer 22nd January 2021

Europe Risk Barometer 22nd 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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