The U.K. Stock market
- The UK stock market was lower this week.
- The Pound fell further this week as fears of a no-deal Brexit increased after the appointment of Boris Johnson as Prime Minister the previous week.
- In the US further tariffs on Chinese imports were announced – President Trump tweeted on Thursday that “China agreed to buy agricultural product from the U.S. in large quantities, but did not do so”. Markets did not react well.
- Our Breadth indicator turned negative and our Momentum indicator turned down.
The U.S. Stock market
- The US stock market was sharply lower his week.
- US President Trump surprised the markets on Friday by announcing further tariffs on $300bn worth of Chinese imports and increasing trade tensions.
- Earlier in the week the Fed cut interest rates by 0.25% as expected but hinted that there may be further rate cuts later in the year if deemed necessary.
- Our Breadth indicator turned negative this week and our Momentum indicator ticked down.
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