The U.K. Stockmarket
- The U.K. stock market was lower this week. The European election results were announced on the previous weekend with the Brexit Party taking more than 30% of the vote and the Conservatives coming in fifth with their worst ever result in a national election.
- Voters flocked to Liberal Democrats and the Green party. Theresa May will step down on 7th June. The Brexit Party win increases pressure on the U.K. to leave the EU without a deal.
- Further deterioration in the U.S./China trade negotiations didn’t help, nor the announcement by President Trump later in the week that the U.S. would be imposing tariffs on Mexican goods as well.
- Our Breadth indicator turned negative and our Momentum indicator, although still positive, was lower again.
The U.S. Stock market
- The U.S. stock market was lower this week as trade relations weighed on sentiment. The U.S./China situation deteriorated with President Trump saying he is nowhere near ready to make a deal and reports later in the week that China is ready to restrict exports of rare earth metals (used particularly in electronic goods) to the U.S.
- Late on Thursday President Trump tweeted that the U.S. will be imposing tariffs on Mexican goods as of 10th June unless the Mexican government stopped migrants with no authorisation from crossing the border.
- The price of oil fell sharply this week and energy was the worst performing sector.
- Our Breadth indicator stayed negative this week and our Momentum indicator, although still positive, ticked lower again.
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