Weekly Market View through 8th January 2021

Weekly Market View through 8th January 2021

UK Stock-Market

  • Despite warnings from the UK government that the NHS could be overwhelmed by the surging number of new coronavirus cases and even with the chaos in the US on Wednesday as Trump supporters stormed the Capitol building, the UK stock-market was higher this week.
  • Markets are hoping that a fast deployment of the Pfizer/BioNTech and AstraZeneca vaccines will achieve the government’s goal of vaccinating 13.9 million people at highest risk from the virus by the middle of next month, and optimistic that a new a Democrat-controlled government in the US will quickly provide further economic stimulus.
  • Both our Breadth indicator and Momentum Indicator stayed positive this week.

UK Market 8th January 2021

US Stock-Market

  • TJoe Biden’s promise at the end of the week that “trillions of dollars” will be provided has investors anticipating that a Democrat-controlled government will quickly push through additional fiscal stimulus to support economic recovery. This seems to have been the major reason markets were able to shrug off Wednesday’s dramatic events when Trump supporters stormed the Capitol building.
  • Despite the assault, Congress certified Joe Biden as President of the United States in the early hours of Thursday morning.
  • In the wake of calls for his removal and impeachment, President Trump condemned the siege on the Capitol and said he would prepare for Joe Biden’s administration, although he will not be attending the inauguration. It seems that House speaker Nancy Pelosi will begin the impeachment procedure if US vice-president Mike Pence does not invoke the 25th amendment and remove Trump from office this week.
  • Both our Breadth indicator and Momentum Indicator stayed positive this week.

US Market 8th January 2021

The Big Picture 8th January 2021

Market Sentiment 8th January 2021

U.S. Risk Barometer 8th January 2021

Europe Risk Barometer 8th January 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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