The U.K. Stock market
- The UK stock market was slightly higher this week.
- Going into the weekend investors seemed optimistic that something positive would come from the meeting between the leaders of the U.S. and China at the G20 Summit in Japan – which it did.
- According to President Trump the meeting went “far better than expected” and both sides have agreed to resume trade talks.
- Our Breadth indicator remained neutral and our Momentum indicator, although still positive, ticked lower again.
The U.S. Stock market
- The US stock market was little changed this week thanks to a rally on Thursday and Friday on hopes that the weekend meeting between US and China at the G20 Summit in Japan would go well.
- As it turned out the trade truce that the markets were hoping for came to pass and the two countries agreed to restart talks. President Trump said “We’re right back on track,” and “We’re holding back on tariffs and they’re going to buy farm products,”. Later he tweeted the meeting went “far better than expected…I am in no hurry, but things look very good!” In turn China said they were “sincere about continuing negotiations with the United States … but negotiations should be equal and show mutual respect.”
- Trump’s own war with the Fed also continued last week as he once again criticised the central bank saying the Fed “blew it” by hiking rates and was acting like a “stubborn child.” Investors seem to have accepted the idea that the President will not sign a trade deal until he gets a rate cut.
- Our Breadth indicator stayed positive this week but our Momentum indicator, although still positive, ticked lower again.
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