The U.K. Stockmarket
- Stock markets in the U.K. and Europe followed the U.S. lower this week.
- Not helped by weak PMI data (purchasing managers’ index) for the eurozone and Italy’s continuing row with the EU over their government’s budget proposals.
- Despite weak data and increasing risks in Europe the ECB signaled it will be stopping bond purchases in December, as planned.
- 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 lower again this week with the S&P 500 index now officially suffering a correction having fallen more than 10% from its recent high.
- The VIX Volatility Index (often called the fear gauge) reached a multi-month high.
- Economic data is still generally strong although housing data has been noticeably weakening recently.
- Investors seemed more focused on worries over the global economy than they were on the release of company’s earning reports.
- Our Breadth indicator stayed negative and our Momentum indicator ticked lower again.
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