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D-PIMS Weekly Market Update - Week of 9th to 15th December 2019

Today’s Monday Update:

Last week had some big news events, namely the UK election result, but also the US/China trade deal:

• On Wednesday, the final ‘poll of polls’ before the UK’s General election showed that the chances of another hung parliament had increased. The predicted Tory majority of 68 from two weeks ago had dropped to 28, but with a large enough margin of error to create total uncertainty at that point!

• In the US, the Fed held interest rates at 1.75% and despite recent stronger economic signs from US economy they signalled no rate changes for next year.

• The UK headed to the polls on a very wet and windy Thursday, with the outcome looking uncertain.

• Friday gave a big surprise, with the election result handing the Conservative party a decisive win and an unexpectedly large majority. The pound reacted very positively rising to its highest level since the 2016 EU referendum. The UK Stockmarket also rallied strongly on the prospect of progress over the prior Brexit deadlock.

Later in the day Donald Trump confirmed that the US would lower the tariff rate on China to 7.5% from 25% and cancel plans to hit virtually all imports from that country on Sunday, under an agreed “phase one” deal.

• Although the world’s Stockmarkets were up over the week, the rising Pound meant that returns on some overseas markets were down. The D-PIMS Portfolios rose over the week, benefiting from the strong UK Stockmarket, but also some currency protection.

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.