The U.K. Stock market
- The U.K. stock market was higher this week.
- Boris Johnson’s latest Brexit deal was voted through but Parliament would not rush the legislation that would have allowed the UK to leave by the 31st October. The Prime Minister will now seek a Commons vote for an election on 12th December; Labour have said they will block this unless a no-deal Brexit is taken off the table.
- Mario Draghi, in his last meeting as President of the ECB, highlighted the possible risks for the EU economy and the need for supportive policies. Christine Lagarde, former head of the IMF, will take over the ECB presidency on the 1st November.
- Our Breadth indicator stayed neutral but our Momentum indicator ticked down again.
The U.S. Stock market
- The U.S. stock market was higher this week.
- Investors were more focused this week on earnings reports than big geopolitical issues.
- Economic data gave further indication of weakness in the manufacturing sector and the consumer sentiment indicator from the University of Michigan also disappointed.
- Our Breadth indicator turned positive but our Momentum indicator ticked lower again.
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