The U.K. Stockmarket
- The U.K Stockmarket bounced back this week along with European markets.
- In the U.K. the MPC voted to leave interest rates unchanged but if a good Brexit deal is negotiated the BofE have signalled that interest rate rises would be forthcoming. Mark Carney said he believed that a smooth departure from the EU is “the most likely outcome”.
- In Europe, data indicated weakening economic growth (third-quarter EU GDP grew at the slowest pace in four years) but this seemed to be trumped by positive trade news.
- Our Breadth Indicator stayed negative this week and our Momentum indicator ticked lower again.
The U.S. Stock market
- The U.S. Stockmarket bounced back this week after the previous week’s heavy decline.
- Investors were encouraged by positive earnings from the majority of companies reporting and President Trump tweeting that he had a “long and very good” conversation with Chinese President Xi Jinping – they are expected to meet again at the G20 summit later this month.
- The market retraced on Friday following the release of a strong October jobs report which investors took as increasing the chances of a further rate rise this year.
- There as also an official denial that the U.S. was preparing a possible trade deal with China.
- Our Breadth indicator stayed negative and our Momentum indicator ticked lower again.
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