MARKET VIEW w/e 11th December 2020

MARKET VIEW w/e 11th December 2020

UK Stock-Market

  • Negotiations between the UK and EU resumed at the start of the week. Boris Johnson and EU Commission President Ursula von der Leyen met on Wednesday but the meeting provided no breakthrough with “very large gaps” seen between the two over key issues. A deadline was set for Sunday to settle the matter but this has come and gone with an announcement that the EU and the UK will go the “extra mile” and the deadline for a post-Brext trade deal has again been extended.
  • On Tuesday the UK became the first western nation to begin rolling out the Covid-19 vaccine.
  • The ongoing Brexit uncertainty along with news that London could be moved to a tier three level of restrictions sent the Pound lower at the end of the week.
  • Our Breadth indicator turned neutral this week but our Momentum Indicator stayed positive and ticked higher.

UK Market 11th December 2020

US Stock-Market

  • The US stock-market was lower this week on concerns that negotiations over a new US stimulus package remain stalled. Senate Majority Leader Mitch McConnell said both sides in the negotiations were “still looking for a way forward”. It appears there are sections in the proposal that will not meet with approval from a large number of Republicans.
  • Increasing Covid-19 cases also weighed on the market but approval of the Pfizer-BioNTech vaccine on Friday by US regulators means the vaccine can now begin rolling out.
  • Our Breadth indicator turned neutral this week but our Momentum stayed positive and ticked higher.

US Market 11th December 2020

The Big Picture 11th December 2020

Market Sentiment 11th December 2020

U.S. Risk Barometer 11th December 2020

Europe Risk Barometer 11th December 2020

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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