The U.K. Stockmarket
- The U.K. stock market was lower this week.
- The Bank of England kept interest rates on hold and, despite stronger growth, indicated there is no urgency to raise them.
- The growth forecast was lifted, with the expectation that there will be further falls in unemployment.
- Our Breadth indicator stayed positive this week but our Momentum indicator, although still positive, turned down.
The U.S. Stock market
- The U.S. stock market was almost flat this week.
- Earnings season is in full swing but investors continue to focus on the two big themes. That is, trade negotiations between the U.S. and China, where a deal has yet to be settled, and the Fed’s interest rate policy.
- This week the Fed announced no-change in interest rates, which was expected, but Chairman Powell’s statement that there was no case for a rate move in either direction disappointed many who were looking for clues there may be a cut later in the year. The better-than-expected jobs data on Friday did little to change that view.
- Our Breadth indicator stayed positive and our Momentum indicator also stayed positive this week.
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