The World This Week

A leading Investment House sent me an email today which I thought would be of interest.  As they say, unless you’ve been living under a rock, Brexit, and turmoil within Theresa May’s cabinet, has dominated most news feeds this week. Looking past all the noise, nothing much has changed yet. A deal has finally been outlined but it remains to be seen whether it will even get through parliament. It’s still a mess and the outcome is unclear.

Outside all the UK, other market remain volatile.

  • Another tough week for crude oil saw it down 17% over the last month. It wasn’t too long ago that a large fall had major economic and market implications around the world. We don’t think a repeat is likely but it does have implications for global asset prices such as government bonds, high yield and emerging markets
  • US equities remain volatile. There are many reasons for this but this week saw profit warnings from suppliers of Apple. That’s right, not Apple itself but its suppliers. While the strong tech performance, the so-called FANGs, could continue for a while, the volatility was a reminder of the S&P’s reliance on a narrow range of stocks.

The UK is just a small part of a big world and they, like other Investment Houses we use, say they will continue to pay close attention to markets all over the world to help protect against downside risks and exploit growth opportunities within globally diversified portfolios.