UK Stock-Market
- The UK stock-market was slightly higher last week. Sentiment received a lift as lockdown restrictions were eased although the situation in Europe, especially France, appears to be getting worse.
- UK Manufacturing PMI (Purchasing Managers’ Index) rose to 58.9 in March, the highest level in more than 10 years. Euro zone manufacturing PMI came in at 62.5 for March, up from 57.9 in February, meaning manufacturing grew at its fastest pace on record.
- Swiss bank Credit Suisse has announced major staff departures after taking a $4.7 billion hit related to the implosion of hedge fund Archegos Capital Management.
- Our Breadth indicator stayed positive but our Momentum Indicator, although still positive, ticked down again.
US Stock-Market
- The US stock-market was higher this week with the tech-heavy Nasdaq index out-performing.
- Stocks were lower at the start of the week triggered by the implosion of hedge fund Archegos Capital Management which was forced to sell $20bn of equites to meet margin calls. The sales included huge positions in US media companies ViacomCBS and Discovery which both saw heavy losses. Some major banks, including Credit Suisse warned of “significant” hits.
- In the US, Joe Biden revealed the first part of his new recovery package on Wednesday, a $2 trillion infrastructure plan. The President, speaking in Pittsburgh, said it will create “the strongest, most resilient, innovative economy in the world”.
- Investors will continue closely watching the US 10-year Treasury yield which spiked last week to a new 14-month high, although it has settled back below 1.7. Inflation concerns will quickly come back into focus if the up-trend continues.
- Our Breadth indicator stayed positive but our Momentum Indicator, although still positive, ticked down again.
US Market 2nd April 2021
The Big Picture 2nd April 2021
Market Sentiment 2nd April 2021
U.S. Risk Barometer 2nd April 2021
Europe Risk Barometer 2nd April 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.’
