The U.K. Stock market
- The U.K. stock market was slightly higher this week.
- The Pound gained with election polls indicating that the Conservatives have a clear lead. Boris Johnson promised he will deliver a new Brexit deal to Parliament before Christmas.
- In the same week the OECD reported that the slowdown in global trade is having the greatest impact on the European Union, there was an unexpected rise in consumer sentiment in Germany and a drop in unemployment – both helped to increase optimism that the country’s manufacturing slowdown may be coming to an end.
- Our Breadth indicator turned positive this week and our Momentum indicator ticked up again.
The U.S. Stock market
- The U.S. stock market was higher in a holiday-shortened week helped by increasing optimism that a “phase one” trade deal between the U.S. and China could be reached soon.
- China announced plans to develop new protection measures to prevent the theft of intellectual property, this being a demand of U.S. trade negotiators but later in the week President Trump signed a bill supporting human rights in Hong Kong, a decision which was criticised by the Chinese.
- Our Breadth indicator stayed positive and our Momentum indicator ticked higher again.
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