The U.K. Stock market
- The U.K. stock market was higher this week as Parliament passed a law that will force the government to seek an extension to Brexit and avoid a crash-out of the European Union with no deal on 31st October.
- The Pound rose strongly to its highest level against the U.S. Dollar since July. Boris Johnson is due to meet Jean-Claude Juncker on Monday to discuss a possible new Brexit deal.
- The European Central Bank (ECB) cut its deposit rate to -0.5% and announced new quantitative easing measures.
- Our Breadth indicator turned positive this week and our Momentum indicator, although still negative, ticked higher again.
The U.S. Stock market
- The U.S. stock market was higher again this week, helped by easing tensions in the trade war with China.
- China announced a list of U.S. products that would be exempted from tariffs due to be implemented this month. In response President Trump tweeted that the U.S. would postpone an increase in tariffs on Chinese imports.
- The new moves indicated a desire by both sides to improve relations ahead of the next talks due to take place in October.
- Our Breadth indicator stayed positive this week and our Momentum indicator ticked higher.
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