The U.K. Stock market
- The UK stock market closed the week at a two month high with help from a weaker Pound, but the uncertainty over Brexit and trade wars continues to hamper global markets.
- Stephen Barclay, Brexit Secretary, said that he thought there was “still a long way to go. I think we are coming to the moment of truth in these negotiations.”
- Recent European economic data has been weak – particularly from Germany raising new fears that the eurozone’s biggest economy is heading for recession.
- Our Breadth indicator stayed positive and our Momentum indicator turned positive.
The U.S. Stock market
- The U.S. stock market was lower this week.
- An official impeachment inquiry against President Trump was announced.
- Trade talks with China are now set to resume on October 7th although markets didn’t react well on Tuesday to President Trump accusing China of “the theft of intellectual property and also trade secrets on a grand scale”. He calmed the market on Wednesday by remarking that a deal with China might happen “sooner than you think” but stocks dipped on Friday with reports the White House might restrict U.S. investment in China and force U.S. exchanges to delist Chinese companies.
- Our Breadth indicator turned neutral this week but our Momentum indicator ticked higher again.
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