Market Review week ending 15th July 2022

Market Review week ending 15th July 2022

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Weekly Market View from Realm Investment Management. Week ending 15th July 2022.

US

Corporate-earnings season kicked off in a week when the Euro fell to parity against a strong Dollar, and Wednesday’s CPI inflation data, once again, came in hotter-than-expected.

The US Federal Reserve has been raising interest rates at the fastest pace for forty years and another 0.75% hike is expected this month with some investors expecting that even a full 1% may be on the table. Interestingly though, markets are also pricing in three rate cuts next year with the Fed expected to pivot and begin another round of easing as the US economy slows rapidly.

Commodity prices have been falling recently which could take the pressure of the Fed and provide a boost for corporate profits. Investors will hope that if that happens the Fed won’t make things worse by hiking too far.

Europe

The European Commission lifted its forecast for inflation in the region and lowered its economic forecast citing the continuing negative impact of the war in Ukraine.

UK

Data from the ONS (Office for National Statistics) showed that the economy unexpectedly grew in May raising the possibility that the UK may not contract in the second quarter.

UK Market 15th July 2022

US Market 15th July 2022

U.S. Risk Barometer 15th July 2022

Europe Risk Barometer 15th July 2022

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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