D-PIMS Weekly Market Update
The last week was a fairly quiet one -
• It did not start that well on Monday with the news that Iran had breached it’s enriched uranium limits, set by the 'Nuclear Deal' agreed in 2015.
• Tensions with Iran increased on Thursday when UK Marines seized on Iranian Oil supertanker off the coast of Gibraltar. It was taking oil supplies to Syria in breach of European and US Sanctions. Iran threatened to retaliate by seizing a British ship.
• Despite these tensions, global stockmarkets dis not react and just seem to take a wait and see approach. Even Oil prices showed little interest!
• A much publicised plot by MPs to block a ‘no deal’ Brexit by freezing government finances, was thwarted on Monday. Surprisingly, this was by the House Speaker Jon Bercow refusing to select the amendments for a vote.
• This did not stop MPs on both sides of the house continuing to plot other ways of stopping a ‘no deal’ Brexit. Statements made to the media on Sunday suggest around 30 Tory MPs would back such measures. This would indicate that even if Boris Johnson is selected as Leader, he will find any plans to take the UK out of the EU without a deal very difficult, if not impossible to realise.
• On Friday, better than expected job creation figures were released in the US. On face of it this was good news, as more jobs helps the economy expand. However, the Markets seemed to take it as a sign that the US Federal Reserve bank will be less likely to cut interest rates. A strange situation where good news becomes bad news!!
• Still, over the week global stock markets generally made good progress, helping the D-PIMS Portfolios to register gains for the last week and getting the second half of the year off to a good start.
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The comments made above represent our interpretation of events and market views and are in no way a guarantee of future investment performance.