The U.K. Stock market
- Deaths from COVID-19 increased in Europe although the number of new cases in Italy slowed as did intensive care admissions in France and Spain indicating that the strategy of lockdowns is showing signs of containing the virus.
- Economic data showed that eurozone business activity posted its biggest monthly fall in March due to the coronavirus. A recession is expected this year.
- Both our Breadth indicator and our Momentum indicator stayed negative this week.
The U.S. Stock market
- U.S. equities were higher at the start of the week with President Trump tweeting a call for a “phase four” stimulus package and economic data from China coming in better than expected.
- Increasingly worrying coronavirus data set the market back though when White House officials warned of a possible 240,000 deaths in the U.S.
- Thursday picked up with a surge in oil prices off their lows, with another tweet from President Trump, this time that he expected Saudi Arabia and Russia to cut production.
- Our Breadth indicator stayed negative and our Momentum indicator ticked lower.
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