The U.K. Stock market
- Gains made on Monday through Wednesday were given back on Thursday and Friday (despite a strong U.S. jobs report) as the UK stock market ended the week lower than the previous week.
- Travel and Leisure stocks were hit particularly hard again with the ongoing fear over coronavirus, and oil and gas shares fell hard after the price of oil sank with Russia refusing to proceed with another oil output cut.
- Our Breadth indicator stayed negative and our Momentum indicator turned negative this week.
The U.S. Stock market
- Another very volatile week started with a strong rally on Monday as prospects for Senator Bernie Sanders seemed to fade in favour of former Vice President Joe Biden who put in a strong performance in many presidential primary elections on Super Tuesday.
- Stocks were also lifted by hopes there would be an announcement of fresh fiscal stimulus and rate cuts at Tuesday’s G-7 meeting, but as it turned out investors were disappointed when little detail was given.
- On Tuesday morning the market rallied a little after the Fed announced an emergency rate cut of 0.5% because of “evolving risks to economic activity” from the coronavirus, but soon fell back with the yield on the 10-year Treasury note falling below 1% for the first time ever, reaching 0.66% on Friday. Concerns over coronavirus increased again later in the week and the price of oil fell heavily again although a strong jobs report on Friday helped provide some stability.
- Our Breadth indicator stayed negative and our Momentum indicator ticked lower.
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