The U.K. Stockmarket
- The U.K Stock market was higher this week ahead of Tuesday’s meaningful vote on Theresa May’s deal to exit the European Union.
- On Friday a press item that suggested Brexit was likely to be delayed beyond 29th March was denied by her spokeswoman but the rally in GBPUSD this month suggests that the markets believe an extension is a good possibility.
- Easing concerns over the U.S. trade dispute with China and more market friendly comments from the Fed also helped the market higher.
- Our Breadth indicator turned positive and our Momentum indicator, although still negative, ticked higher again.
The U.S. Stock market
- The U.S. Stock market was higher again this week continuing a strong start to 2019 initially sparked by U.S. Fed officials making more market friendly comments in recent speeches.
- Volatility has calmed with the VIX index (often called the “Fear Gauge) hitting its lowest level in a month.
- U.S. and China reported good progress in their talks. The recent market falls seem to have increased pressure on President Trump to conclude a deal; he tweeted last week that talks are “going very well.”
- Our Breadth indicator stayed negative and our Momentum indicator ticked lower again.
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