The U.K. Stock market
- The UK stock-market was lower again this week.
- The rate of coronavirus infections picked up in the UK and Boris Johnson voiced fears of a second wave saying the UK would react quickly. More lockdowns were ordered in the north of England.
- A resurgence in Europe raised concerns about economic recovery for the region and European company earnings were not impressive, especially for banks.
- Our Breadth Indicator stayed negative but our Momentum Indicator ticked higher again.
The U.S. Stock market
- The US stock-market was higher in the busiest week for quarterly reports with industrial companies showing the effects of the coronavirus on earnings.
- S&P 500 companies are predicted to show the largest fall in earnings since 2008. However, major tech companies like Apple and Amazon reported earnings that were much better than expectations.
- The advance estimated of second quarter GDP showed the US economy shrank by an annualized 32.9%, the biggest contraction ever.
- Our Breadth indicator stayed positive this week as did our Momentum indicator.
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