The U.K. Stock market
- The U.K. stock-market was lower this week. Deaths from coronavirus fell to the lowest level in nine weeks and P.M. Boris Johnson announced further easing of lockdown restrictions with pubs and restaurants able to reopen on 4th July.
- Andrew Bailey, Governor of the Bank of England, said the BofE should cut back its bond buying program before raising rates and that the current level of purchasing “shouldn’t always be taken for granted.”
- Tensions between Europe and the U.S. increased after the U.S. threatened to impose further tariffs of over 3 billion dollars on EU and UK goods.
- Our Breadth indicator stayed neutral this week and our Momentum indicator, although still negative, ticked up again.
The U.S. Stock market
- The U.S. stock-market was lower this week as a surge in coronavirus cases weighed on sentiment.
- There were some positives for the market though with President Trump saying that a further “very generous” stimulus package was on its way and tweeting that the trade deal with China was “fully intact.” However, later in the week, Chinese officials warned that U.S. “meddling” in the situation between them and Hong Kong and Taiwan could put their trade deal at risk.
- Our Breadth indicator turned neutral this week but our Momentum indicator, although still negative, ticked higher again.
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