The U.K. Stock market
- The UK stock market was higher this week.
- The Pound came under further pressure after Boris Johnson became the new Prime Minister – this seen as increasing the likelihood of a no-deal exit from the EU.
- Following further disappointing data from the Euro area the ECB signaled it is ready to cut rates and introduce a fresh monetary stimulus package to help the eurozone economy.
- Our Breadth indicator stayed neutral but our Momentum indicator ticked down.
The U.S. Stock market
- The US stock market was higher his week. Second quarter earnings reporting season is well underway and more companies than usual have been beating estimates.
- Stocks rose early in the week when it was announced that trade talks would resume in China this coming week but on Friday White House economic adviser Larry Kudlow said he “wouldn’t expect any grand deal” to result from the visit.
- The market is pricing in a high expectation for a rate cut this coming week with a lower expectation that it will be a half percent rather than a quarter.
- Our Breadth indicator turned back to positive this week and our Momentum indicator ticked up again.
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