The U.K. Stock market
- The U.K. stock-market was lower this week as the relentless surge in new coronavirus cases in the U.S. and a few other countries across the world offset hopes about an economic recovery.
- On Wednesday the U.K. government announced a £30 Billion stimulus package. To tackle a potential unemployment crisis, businesses bringing furloughed employees back to work will receive a bonus.
- The European Commission lowered its GDP forecasts for 2020 and 2021, saying that the lifting of COVID-19 lockdown measures in some countries was proceeding less swiftly than it had initially predicted.
- Our Breadth indicator turned negative this week but our Momentum indicator, although still negative, ticked up again.
The U.S. Stock market
- The U.S. stock-market was higher again this week despite the number of confirmed coronavirus cases in the U.S. topping 3 million.
- Markets were encouraged by comments from Treasury Secretary Mnuchin on Thursday raising expectations for another coronavirus relief bill by month end.
- Sentiment was also lifted by comments from James Bullard of the Fed who predicted that unemployment could fall as low as 7% by the end of the year.
- Our Breadth indicator stayed positive this week as did our Momentum indicator.
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