The U.K. Stockmarket
- The U.K. stock market was slightly lower this week.
- The Fitch rating agency declared a negative watch on the UK’s AA credit rating as Brexit uncertainty continues. Even so, the Pound moved higher for most of the week and employment data showed that the jobs market is improving.
- Theresa May is expected to ask the EU for a three month delay to the Brexit deadline.
- 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.
- Investors were pleased that good progress appeared to be made in the U.S./China trade negotiations and the release of minutes from last month’s Federal Reserve meeting showed support for a “wait and see” approach regarding futures rate hikes.
- These factors seemed to outweigh worse-than-expected economic data including housing data and manufacturing activity.
- Our Breadth indicator stayed positive this week and our Momentum indicator (although still negative) ticked higher again.
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