The U.K. Stock market
- The U.K. stock-market was lower this week. The Office for National Statistics (ONS) reported that the UK economy shrank by 2.0% in the first quarter, the biggest fall since 2008.
- A flash estimate from Eurostat, indicated the eurozone economy contracted by a record 3.8% in the same period. Welcome optimism came from the ECB Vice-President Luis de Guindos who said the eurozone economy could rebound by as much as 6% in 2021 although he did add that uncertainty was high.
- Our Breadth indicator stayed negative this week but our Momentum indicator, although still negative, ticked up for the first time since February.
The U.S. Stock market
- The U.S. stock-market was lower this week. Federal Reserve Chair Jerome Powell, said that the U.S. economy is “subject to significant downside risks” in the coming months but he also hinted that further stimulus measures, may be forthcoming if needed.
- Sentiment also took a knock from President Trump who stated that the U.S. might “cut off the whole relationship” with China.
- Our Breadth indicator stayed negative this week but our Momentum indicator, although still negative, ticked higher again.
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