The U.K. Stock market
- Stock-markets fell in the U.K. and Europe this week on renewed coronavirus fears after reports showed an increase in new cases.
- Governor of the Bank of England, Andrew Bailey, said there were signs of pickup but warned that long-term economic damage was likely.
- Economic data showed that U.K. GDP shrank by 20.4% in April (a record) with the economy contracting 24.5% year on year.
- Our Breadth indicator turned neutral this week (from positive) but our Momentum indicator, although still negative, ticked up again.
The U.S. Stock market
- The U.S. stock-market was sharply lower this week. Investors focused on a downbeat economic forecast from the Fed and fears of a second wave of coronavirus infection after reports showed an increase in new cases.
- Following the latest Fed policy meeting that concluded on Wednesday, the U.S. central bank said it expects the economy to contract by 6.5% this year and indicated that rates are likely to remain close to zero through to 2022.
- Our Breadth indicator stayed positive this week and our Momentum indicator, although still negative, ticked higher again.
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