The U.K. Stockmarket
- The UK Stock market was higher this week. Large-cap stocks out-performed as the Pound fell.
- Sterling weakness followed a Commons vote to support renegotiating key points in the Brexit deal – even though the EU have warned this will increase the chances of a no-deal outcome.
- The Italian economy fell into recession and data showed that the eurozone economy grew by 1.8% in 2018, its weakest pace in four years.
- Our Breadth indicator stayed positive and our Momentum indicator, although still negative, ticked higher again.
The U.S. Stock market
- The U.S. Stock market was higher this week but started on a down note. A resolution (possibly temporary) to the Government shutdown brought little positive reaction and an announcement that charges would be brought against the CFO of Chinese technology company, Huawei, saw stocks lower.
- Some better-than-expected earnings reports lifted sentiment mid-week.
- The biggest boost came from Fed Chair Powell who gave an investor-friendly press conference following a policymakers’ meeting which left rates unchanged.
- Our Breadth indicator stayed neutral and our Momentum indicator (although still negative) ticked higher.
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