D-PIMS Weekly Market Update - Week of 21st to 27th October 2019
Today’s Monday Update:
There wasn’t a great deal of news over the week, even on the Brexit front:
• The new EU Divorce Deal was due to be put before Parliament on Monday. However, the Speaker blocked this by saying it had already been debated, even though an actual vote had not taken place.
• On Tuesday the EU said a response to the UK’s (reluctant) extension request will be decided upon ”in the coming days”. Brexit hung in the balance, as Parliament proceeded with debating and voting on the EU Withdrawal legislation that would be required for the Deal to be implemented, even if it was voted through.
In the event the vote on the second reading of the new Brexit deal was finally voted through in Parliament (329 to 299 – a much bigger majority than expected). It was then immediately followed by the short timetable to implement the Deal being voted down. This prompted the PM to halt the prosses and start pushing for an election, again. It became highly unlikely the PM could stick to the 31 October Deadline.
• Thursday saw the ECB leave interest rates unchanged, at the record low of -0.5%, as expected. The Queens speech was put to Parliament and in a rare event for the PM, he won the vote for his legislative agenda. This was largely symbolic, as without a majority in the House, it is questionable whether any of the measures in it could be implemented.
• At the end of the week there was still no official decision from the EU about granting the UK an extension to the Brexit deadline, although it looked very likely that they would approve one.
• The Markets were up over the week on Trade optimism, particularly the FTSE for a change. The D-PIMS Portfolios took advantage, with a good positive week!
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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.