The U.K. Stock market
- The U.K. stock-market was higher this week. The U.K.’s coronavirus death toll has passed 10,000 but there are signs from continental Europe that the outbreak is in decline with slowing numbers of deaths raising hopes that country lockdowns may soon be eased.
- The Bank of England announced an extension to the Ways & Means Facility, which could allow the UK government to borrow directly from the BoE during the Covid-19 crisis.
- Prime Minister Boris Johnson continues to recover from the virus but has left hospital.
- Both our Breadth indicator and our Momentum indicator stayed negative this week.
The U.S. Stock market
- The U.S. stock-market was higher this week on optimisim that global coronavirus infection rates were stabilising and falling in some countries – on Tuesday China reported no coronavirus-related deaths for the first time.
- Early in the week President Trump said another round of stimulus was “absolutely under serious consideration” and on Thursday the Fed announced additional measures that amounted to $2.3 trillion in programs aimed at businesses and state and local governments.
- This seemed justified because on the same day it was reported that a further 6.6 million had registered for unemployment benefits in the previous week which brings the total since mid-March to 17 million, or 10% of the workforce.
- Earnings season begins this week with stock analysts struggling to forecast company performance during the pandemic.
- Our Breadth indicator stayed negative and our Momentum indicator ticked lower.
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