The U.K. Stockmarket
- The U.K. Stockmarket was lower this week; currency traders seem to be pricing in the idea that a ‘no-deal’ Brexit will not become a reality.
- The large-cap FTSE100 under-performed due to a strong rally in sterling this week.
- UK data showed mortgage approvals falling for a second consecutive month and that credit card lending growth was slowing.
- 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 flat this week.
- There was a weak start to the week after the IMF lowered its forecast for global growth and data indicated a deceleration in China. There were also reports that the U.S. government had rejecetd an offer to hold preparatory talks with Chinese officials ahead of this coming week’s formal trade negotiations. These reports were quickly denied but Commerce Secretary Wilbur Ross did say the U.S. and China were “miles and miles” away from an agreement.
- The market recovered to the end of the week on good wages data, some good earnings reports and signs that Republicans and Democrats were close to an agreement to end the government shutdown.
- Our Breadth indicator stayed neutral and our Momentum indicator (although still negative) ticked higher.
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