The U.K. Stockmarket
- The U.K. stock market was lower this week. The ECB surprised on Thurday by keeping rates at current levels (until 2020 at least) and announced new stimulus to combat slowing economic growth. There was also disappointing trade data from China and a much worse-than-expected U.S. jobs report on Friday.
- On the Brexit front, Prime Minister Theresa May seems to be facing another defeat this coming week in the second “meaningful vote” on her withdrawal deal.
- Our Breadth indicator stayed positive and our Momentum indicator also stayed positive this week.
The U.S. Stock market
- The U.S. stock market was lower this week with the S&P 500 index dipping back below its 200-day moving average, a widely followed technical indicator.
- Although there were claims by both U.S. and Chinese officials that negotiations were advancing, U.S. envoy to Beijing, Terry Branstad, said that a date had not been set for a meeting between President Trump and China’s Xi Jinping as neither believed an agreement was imminent.
- Global growth fears came to the fore again as the ECB announced there would be a further injection of liquidity into the eurozone’s banking system and China announced new stimulus for its manufacturing sector. The week ended with a hugely disappointing jobs report on Friday.
- Our Breadth indicator turned neutral this week but our Momentum indicator turned back to positive.
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