The U.K. Stock market
- The U.K. stock market was higher this week following Boris Johnson’s decisive general election victory.
- The Prime Minister announced he would amend the Brexit bill to prevent an extension of the transition period beyond the end of 2020 – fears of a no-deal Brexit re-emerged and the Pound fell.
- The Bank of England kept interest rates on hold, warning of mounting weakness in the British economy.
- Our Breadth indicator stayed positive this week and our Momentum indicator ticked up again.
The U.S. Stock market
- The U.S. market was higher this week on optimism that a preliminary deal between the U.S. and China would be done soon. Both sides strongly implied this will happen in January.
- Positive economic data also helped the market higher.
- Our Breadth indicator stayed positive and our Momentum indicator ticked higher again.
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