Weekly Market View from Realm Investment Management. Week ending 3rd December 2021.
The UK stock market gained last week after two weeks of declines. The Pound was lower against all major currencies. At the start of this week stocks have extended gains with the FTSE 100 receiving a boost from major oil companies which are bouncing back as the oil price rallies from recent severe losses.
The Deputy Governor of the bank of England, Ben Broadbent, said today that UK inflation could “comfortably exceed” 5% next year.
US equities were lower last week with only the Utilities sector showing a gain but the US market has also started the week on a stronger note as reports indicate the Omnicron variant of coronavirus may cause milder syptoms than first thought.
Speaking before Congress last week, Federal Reserve Chairman Jerome Powell indicated that the Fed may consider tapering monthly bond purchases at a faster rate than previously expected.
Investors are looking ahead to the release of the latest CPI data on Friday and generally expecting the data to show the persistence of inflationary pressures.
The Big Picture 3rd December 2021
Market Sentiment 3rd December 2021
U.S. Risk Barometer 3rd December 2021
Europe Risk Barometer 3rd December 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.’