The U.K. Stockmarket
- The U.K. Stockmarket was down through Thursday but a strong bounce on Friday meant a small gain for the week.
- The market was volatile with investors concerned over losses in the U.S. markets early in the week but then following the subsequent Wall Street rally higher at the end of the week.
- U.S./China trade relations remain in focus and obviously Brexit uncertainty is still a concern with Jeremy Corbyn this week urging the government to cut the Christmas recess short and get the vote on the EU withdrawal agreement done “as soon possible”.
- Our Breadth Indicator stayed negative this week and our Momentum indicator ticked lower again.
The U.S. Stock market
- The U.S. Stockmarket fell sharply at the start of the week after Treasury Secretary Steven Mnuchin’s announcement that major banks had assured him they had no liquidity problems. Just raising the issue though was taking negatively by the markets on Monday and not helped by another tweet from President Trump criticising the Fed’s recent actions.
- However, from Tuesday there was a recovery and the market finished another highly volatile week higher than the previous week.
- Our Breadth indicator stayed negative and our Momentum indicator ticked lower again.
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