The U.K. Stockmarket
- The U.K.stock market was slightly higher this week helped by a strong performance in the U.S.
- The Pound fell relative to the Euro as the Chancellor warned against leaving the European Union without a deal and the government released contingency plans for just such an event.
- Our Breadth Indicator stayed negative this week and our Momentum indicator ticked lower again.
The U.S. Stock market
- The U.S. stock market was higher this week with the Technology sector and Small-Caps out-performing Large-cap indices. The price of oil rallied which helped the energy sector as well.
- President Trump said he hoped the Fed would keep interest rates low but Fed chairman Powell said in a speech on Friday that gradual rate-hikes were appropriate given current levels of inflation and unemployment.
- Our Breadth indicator stayed positive but our Momentum indicator ticked lower again.
- There is a clear and growing divergence between the performance of the U.S. Stock market and the rest of the world.
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