The U.K. Stockmarket
- The UK Stockmarket was slightly higher this week following the previous week’s sharp sell-off.
- Brexit remains a major concern with economists still seeing a 20% chance of no deal (the EU said it is ready to extend the length of the post-Brexit transition if the UK wants).
- Italy is also in focus with the European Commission calling the Italian government’s budget proposals an “unprecedented” breach of EU rules. However the EU later called for talks with Rome which may help to ease tensions.
- Our Breadth Indicator stayed negative this week and our Momentum indicator ticked lower again.
The U.S. Stock market
- A rally early in the week was retraced on Thursday following the release of minutes from the Fed’s September monetary policy meeting indicating that rate hikes are likely to continue.
- Investors focused less on earnings reports and more on global economic and political concerns including the U.S./China trade dispute, the EU’s problems with the Italian budget proposals, and relations with Saudia Arabia.
- Our Breadth indicator stayed negative and our Momentum indicator ticked lower again.
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