The U.K. Stock market
- The U.K. stock market was lower this week. Data showed that the UK grew 1% in the quarter and avoided recession. The economy grew at its slowest annual rate in about a decade, due largely to Brexit uncertainty.
- Rating agency Moody’s lowered its outlook for the UK to negative.
- Germany also avoided falling into technical recession by growing just 0.1% in the quarter.
- Our Breadth indicator stayed positive and our Momentum indicator ticked up again.
The U.S. Stock market
- The U.S. stock market was higher this week.
- Increased optimism about a “phase one” trade deal was the main driver of sentiment with President Trump stating a trade deal (albeit a partial one) was close.
- There was further indication this week from Federal Reserve Chair Jerome Powell that the Fed was on “pause” after cutting rates in October and implied there would need to be a significant deterioration in the economy before further cuts were made.
- Our Breadth indicator stayed positive and our Momentum indicator ticked higher.
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