The U.K. Stockmarket
- The U.K. Stockmarket was lower this week.
- The government instructed UK firms to begin planning for a no-deal scenario and with the ongoing uncertainty over Brexit, the Bank of England kept interest rates on hold this week.
- Worries over U.S./China relations and uncertainty over global growth also weighed on sentiment.
- Our Breadth Indicator stayed negative this week and our Momentum indicator ticked lower again.
The U.S. Stock market
- The U.S. stockmarket was sharply lower this week.
- The Fed raised rates on Wednesday by 0.25% as expected. Equities sold off after the announcement. Investors had been hoping for signals that rate increases would be paused but the Fed didn’t deliver. The general expectation is now for two further hikes in 2019 rather than three.
- Other factors that weighed on sentiment this week were a Bloomberg report that President Trump had discussed firing the Fed Chairman Jerome Powell and the prospect of a government shutdown over the President’s demand that Senate pass a bill that included border wall funding.
- Our Breadth indicator stayed negative and our Momentum indicator ticked lower again.
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