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

Today’s Monday Update:

Over the last week the two usual suspects of Brexit and Trade Wars featured heavily:

• It came as no surprise last Monday that the ‘Brexit Bill’ became law when it was ratified by the House of Lords. This effectively compels the Prime Minister to request another Brexit deadline extension if a ‘new deal’ is not approved in Parliament by 19th October 2019. This did not appear to re-assure the opposition that they had done enough to prevent any possibility of a no deal Brexit, as they then voted down the PM’s request for a General Election – again.

• Despite the Bill becoming law, Boris Johnson again said he would not request an extension to Brexit – how this will pan out in reality is hard to imagine – could we see the arrest of a Prime Minister?! It seems unlikely.

• Wednesday saw a slight thawing of the Trade War, when China eased market’s concerns by removing many US import items from their latest tariff list. This was followed up later in the week with reciprocal action from the US, with Trump announcing a delay to their Tariffs due to commence 1st October. This was to allow the scheduled talks with China to take place before any implementation.

• Thursday saw major action from the ECB (European Central Bank), when the head of the bank, Mario Dragi, announced the re-launch of QE (Quantitative Easing) across the Euro area. They will be buying 20 Billion Euros worth of Bonds every month with no set end date. Given they already own vast amounts of Bonds from the previous QE programme they may start to struggle to find things to buy at some point! They also cut interest interests further into negative territory, down to -0.5%, prompting an outcry from European Banks!

• Over the week Stockmarkets were generally up, but Bond Markets down. The Pound also saw further strengthening, but despite this the D-PIMS Portfolios were mainly a little ahead, especially the higher risk Portfolios.

 


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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.

 

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