The U.K. Stock market
- The U.K. stock-market was almost unchanged this week. Boris Johnson promised that the government would fast-track 5 billion pounds of spending on infrastructure to help economic recovery.
- The Chief Economist at the BofE, Andy Haldane, said that data indicated the economy was already “two months into a recovery” as manufacturing in the UK returned to expansion in June.
- Christine Lagarde, President of the European Central Bank, said that the worst of the coronavirus crisis might be over.
- Our Breadth indicator stayed neutral this week but our Momentum indicator, although still negative, ticked up again.
The U.S. Stock market
- U.S. stocks were higher this week despite the global coronavirus death toll rising above 500,000 and the World Health Organisation saying that the pandemic is still accelerating.
- The focus instead was on the positive news that an early trial of a coronavirus vaccine being developed by Pfizer and BioNTech is showing potential and improving economic data.
- Our Breadth indicator turned positive this week and our Momentum indicator also turned positive.
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