The U.K. Stock market
- The U.K. stock market was lower this week as fears over the outbreak of coronavirus in China outweighed any positives.
- An IHS Markit survey of purchasing managers showed that U.K. business activity recorded expansion for the first time in five months reducing the likelihood of a rate cut from the Bank of England.
- Sajid Javid, Chancellor of the Exchequer, told the FT that the U.K. intends to be out of the single market and customs union by the end of the year. Steve Mnuchin, U.S. Treasury Secretary, said the U.S. administration expects to conclude a trade deal with the U.K. this year.
- Our Breadth indicator stayed positive this week and our Momentum indicator ticked up again.
The U.S. Stock market
- There was some positive economic news midweek but market gains that followed were given back as the main focus for investors this week, the outbreak of coronavirus in China, took hold again. Markets were sent lower again on Friday following the report of a second case in the U.S.
- Trade fears may have also played a part after President Trump said he was prepared to implement tariffs on European auto imports.
- Our Breadth indicator turned neutral this week but our Momentum indicator ticked higher again.
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