The U.K. Stock market
- Stock markets in the U.K. and Europe were higher this week on apparent progress in the U.S./China trade talks and increasing optimism that a Brexit deal could be achieved.
- The Pound rallied strongly at the end of the week following a statement from Boris Johnson and Leo Varadkar, Ireland’s taoiseach, after a three hour meeting in Dublin. They said they could see “a pathway to a possible deal”.
- Optimism rose further after the UK and the EU “agreed to intensive negotiations in the coming days.”
- Our Breadth indicator turned neutral (from negative) this week but our Momentum indicator ticked down again.
The U.S. Stock market
- The U.S. stock market was higher on reports that talks in Washington between U.S. negotiators and a Chinese trade delegation were making progress.
- On Friday President Trump tweeted “Good things are happening at China Trade Talk Meeting.” Later in the day it was reported that the two countries had agreed a “phase one” deal.
- However, today (Monday) the Chinese have said they want further talks as soon as this month to iron out the details of the deal before they will sign it.
- Our Breadth indicator turned back to neutral but our Momentum indicator ticked lower again.
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