The U.K. Stock market
- The U.K. stock-market was almost unchanged this week. Gains were made early in the week as some European countries announced more detailed plans on the gradual reopening of their economies and the easing of their lockdown measures.
- These gains were given up in the second half of the week as data showed that Eurozone GDP (gross domestic product) shrank by more than forecast in the first quarter.
- President Trump’s latest comments about China didn’t help markets either, see below.
- Both our Breadth indicator and our Momentum indicator stayed negative this week.
The U.S. Stock market
- The U.S. stock-market made a positive start to the week with the partial lifting of lockdown in some states (and some European countries) and Gilead Sciences announcement that its drug remdesivir had performed well in a large trial.
- However, Thursday and Friday gave up the gains from the earlier part of the week as data showed that more than expected (3.84 million) Americans had filed for unemployment bringing the total to over 30 million in six weeks.
- Investors were also nervous that President Trump’s comments regarding possible new trade sanctions on China in retaliation for its lack of cooperation over coronavirus could re-ignite tensions between the U.S. China.
- Our Breadth indicator stayed negative and our Momentum indicator ticked lower.
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