Weekly Market View through 7th May 2021

Weekly Market View through 7th May 2021

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UK Stock-Market

  • The UK stock-market was higher last week.
  • The Bank of England announced its latest monetary policy decision leaving interest rates and its bond buying program unchanged as expected but the central bank raised its outlook for the economy, anticipating the best year for UK growth since the second world war. European shares also had a good week with earnings reports generally better-than-expected.
  • Strong economic data from China also helped with exports from China rising more than expected in April.
  • Our Breadth indicator stayed positive and our Momentum Indicator, ticked higher again.

UK Market 7th May 2021
US Stock-Market

  • The US stock-market was higher last week but the technology sector under-performed with investors favouring Value stocks once again.
  • On Tuesday, markets were not impressed with comments from Janet Yellen, US Treasury Secretary, who said interest rates will have to rise at some point, although she later said this was not a forecast.
  • The big event of the week was the US jobs report for April released on Friday. This is a widely watched indicator of economic recovery and economists had anticipated the addition of 1 million new jobs. As it turned out their expectations were massively off the mark with only 266,000 net non-farm payrolls being added. Treasury yields fell and stock index futures rose strongly in the anticipation that the Fed would be less inclined to raise rates and cut stimulus after the report.
  • 80% of companies in the S&P 500 have now reported first-quarter earnings which most beating analysts forecasts.
  • Our Breadth indicator stayed positive and our Momentum Indicator ticked higher.

US Market 7th May 2021
The Big Picture 7th May 2021
Market Sentiment 7th May 2021
U.S. Risk Barometer 7th May 2021
Europe Risk Barometer 7th May 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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