The U.K. Stockmarket
- The UK stock market was lower this week. The Pound fell all week – talks between the government and the Labour party collapsed with Jeremy Corbyn saying the talks “have gone as far as they can”.
- The U.S./China situation took a turn for the worse as China implemented retaliatory tariffs on U.S. goods.
- Data showed the UK unemployment rate fell to a new low of 3.8% in the first quarter of 2019.
- Our Breadth indicator turned neutral and our Momentum indicator, although still positive, was lower again.
The U.S. Stock market
- The U.S. stock market was lower this week.
- Monday saw a steep drop following China’s announcement over the previous weekend that it would be implementing a further $60 Billion in tariffs on U.S. imports in retaliation for the $200 Billion tariffs imposed by the U.S. the previous week. President Trump tweeted that the U.S. would “make a deal when the time is right” and the markets will be hoping this will be progressed when he meets President Xi at the G20 meeting in Osaka at the end June.
- There was a surprise fall in US industrial production in April, the third decline in four months.
- Our Breadth indicator turned negative this week and our Momentum indicator, although still positive, ticked lower again.
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