The U.K. Stock market
- Bank of England Governor Andrew Bailey said in a newspaper interview that the UK economy may take longer to recover from the impact of the coronavirus than thought earlier in the month but added that further support would be ready if needed.
- Christine Legarde, President of the European Central Bank warned that economic activity in the eurozone would shrink 8% to 12% this year.
- Despite the gloomy forecasts the U.K. stock-market was higher this week as the global economy began to re-open.
- Our Breadth indicator turned neutral this week and our Momentum indicator, although still negative, ticked up again.
The U.S. Stock market
- The U.S. stock-market was higher this week largely due to increasing optimism over the lifting of lock-down restrictions and the re-opening of the global economy.
- Sentiment was also helped by better-than-expected economic data and news of a potential coronavirus vaccine from the company Novavax.
- President Trump gave a much anticipated news conference on Friday regarding a response to China over their new national security law for Hong Kong, and markets were relieved that he announced no new sanctions on Chinese goods.
- Our Breadth indicator turned positive this week but our Momentum indicator, although still negative, ticked higher again.
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