The U.K. Stock market
- The U.K. stock-market closed slightly lower this week.
- The U.K. lockdown will last at least another three weeks although some European countries, where there are signs that the coronavirus crisis is abating, have outlined plans to reopen their economies.
- Christine Legarde, the ECB President, said the central bank is prepared to increase the size of its asset purchase programs by as much as necessary and for as long as needed and European finance ministers agreed on a EUR 500 billion package to support businesses and workers.
- Both our Breadth indicator and our Momentum indicator stayed negative this week.
The U.S. Stock market
- The U.S. stock-market was higher this week with technology (Nasdaq index) out-performing.
- The week finished on a strong note with reports that an antiviral medication from Gilead Sciences was helping some patients to recover quickly from coronavirus.
- The market was strong despite plenty of negatives; another 5.2 million initial jobless claims bringing the total number to more than 22 million over the last month, retail sales showing the sharpest monthly decline on record and industrial production showing a record post-war decline in March.
- Earnings season got under way with some major banks reporting severe profit declines in the first quarter.
- Our Breadth indicator stayed negative and our Momentum indicator ticked lower.
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This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’