The U.K. Stockmarket
- The U.K. Stockmarket was slightly higher this week.
- Investors were cautious going into the weekend and the meeting between Donald Trump and China’s Xi Jinping.
- Continued uncertainty over Brexit also weighed on the market. It looks doubtful that Theresa May will get parliamentary approval for her draft agreement on Dec. 11 and in an interview with the BBC, Mark Carney warned that UK companies are not prepared for a hard Brexit.
- Our Breadth Indicator stayed negative this week and our Momentum indicator ticked lower again.
The U.S. Stock market
- The U.S. stockmarket was higher this week.
- The market rallied on Wednesday following a speech by Fed Chair Powell in which he said that interest rates are “just below” neutral. This was in sharp contrast to previous comments made in October and investors are seeing a change of mind here and the possibility that the Fed will slow its program of rate rises.
- Hopes for a delay in further US tariffs on imports from China also helped lift the market at he end of the week.
- Our Breadth indicator stayed negative and our Momentum indicator ticked lower again.
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