D-PIMS Weekly Market Update - Week of 29th July to 4th August 2019
Today’s Monday Update:
The main news flow over the last week was less good than recently:
• Monday saw Boris Johnson push back against the EU rebuff and ‘turn up the heat’, by stating that he will hold no further talks until the EU agree to re-negotiate the three-time rejected Withdrawal Agreement. This was despite the EU having pledged not to re-open agreement. This exchange pushed the Pound to a more than two year low.
• On Tuesday the Pound fell further - to its lowest since March 2017, when Boris again insisted that the UK will leave the EU on 31st October 2019 ‘no matter what’. Later in the day Donald Trump piled pressure the US Federal reserve on the first day of their two day interest rate setting meeting, by calling for a ‘large’ rate cut.
• Wednesday did indeed see the Fed follow through with rate cut, but a ‘standard’ one of 0.25% and they signalled that any further cuts would be ‘dependent on economic data’. This disappointed Markets, which were hoping for a confirmation that more cuts will definitely come.
• Trump upset the Markets further on Thursday with a surprise Tweet announcing the imposition of 10% Tariffs on the remaining $300 billion of Chinese imports from 1st September 2019. This was despite him recently declaring that the ongoing negotiations were ‘going well’.
• Not surprisingly the week’s combined events did push Stockmarkets down overall. Although the D-PIMS Portfolios were inevitably impacted, they did hold up relatively well with only the higher risk portfolio a little down.
The value of investments and the income from them can fall as well as rise and you may not get back the original amount you invested.
Past Performance is no guarantee of, or guide to future returns.
The comments made above represent our interpretation of events and market views and are in no way a guarantee of future investment performance.