The U.K. Stock market
- The U.K. stock-market was lower this week with an extraordinary move in the price of oil into negative territory being the main focus.
- The U.K. composite Purchasing Managers’ Index (PMI) fell to a record low in April as lockdown measures were extended whereas some countries in Europe are preparing to gradually ease some restrictions.
- European markets were lower with ongoing divisions regarding the size of a recovery fund intended to offset the economic shock caused by the coronavirus and whether it should be in the form of grants or loans.
- Both our Breadth indicator and our Momentum indicator stayed negative this week.
The U.S. Stock market
- The U.S. stock-market was lower this week.
- The main driver of sentiment was the price of oil which saw an unprecedented development as oil futures fell into negative territory. Futures recovered on Tuesday and equities were further helped by some positive earnings surprises.
- The market set back again on Thursday on news that clinical trials of remdesivir, a potential treatment for COVID-19, had failed in China but the week managed to end on a strong note.
- Our Breadth indicator stayed negative and our Momentum indicator ticked lower.
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