The U.K. Stockmarket
- The U.K. stock market was higher this week. Brexit dominated the news again as MPs voted to seek an extension to the deadline date.
- The Prime Minister may also bring her deal back for a third “meaningful vote” this coming week and if passed this time she will ask for a short extension to finalise the arrangements. On the other hand if a further vote rejects her deal again she will likely ask for a much longer delay. Her hope is that the possibility of a long delay will spur enough Brexiteers to come onside and help vote her deal through.
- Our Breadth indicator stayed positive and our Momentum indicator also stayed positive this week.
The U.S. Stock market
- The U.S. stock market was higher this week with technology stocks out-performing and the volatility index (VIX) falling to a five month low.
- Optimism was high on Monday regarding the US / China trade talks but this was tempered a little later in the week following reports that the two leaders would most likely not meet this month.
- Doubts over China’s economic growth also dampened enthusiasm mid-week but there was a strong end to the week after reports that China would respond with new stimulus measures.
- Our Breadth indicator turned back to positive this week and our Momentum indicator stayed positive.
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