The U.K. Stock market was lower this week.
- The composite purchasing managers’ index (PMI) for the Eurozone region, considered a good indicator of economic health, fell to a two month low in August of 51.6. Above 50, indicating growth, but below expectations of 55.3.
- UK PMI Data, showed “Sharpest increase in UK private sector output since October 2013, but the rate of job shedding accelerated in August”.
- Latest Brexit talks between the UK and the EU ended with no significant breakthroughs.
- Our Breadth indicator turned negative and our Momentum indicator, although still positive, ticked lower again.
The U.S. Stock market was higher this week.
- The technology-heavy Nasdaq index out-performed. The S&P 500 reached a new all-time high, exceeding the February peak and marking the fastest recovery ever from a bear market.
- Minutes from the Federal Reserve’s late July meeting revealed a cautious view of the US economy and indicated they were lowering their forecast for economic growth for the rest of the year.
- Weekly unemployment claims report rose to 1.1 million, which was disappointing, but continuing jobless claims decreased to 14.84 million, below market forecasts of 15.0 million and the lowest since first week of April.
- Our Breadth indicator stayed positive this week but our Momentum indicator, although still positive, ticked lower.
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