The U.K. Stock market
- The UK stock market, and European equities, were higher this week.
- In part, due to news that Christine Lagarde (Director of the IMF) was nominated to be the next ECB president. Her appointment is interpreted as an indication of additional monetary stimulus to come for the Eurozone.
- Friday ended the week on a down note as a better than expected U.S. jobs report was interpreted by some economists as suggesting the Fed may not now cut interest rates at the end of the month as the market has been expecting.
- Our Breadth indicator turned positive but our Momentum indicator, although still positive, ticked lower again.
The U.S. Stock market
- The U.S. Stock Market was higher this week.
- The week started well as investors gave a positive response to the news that the meeting over the previous weekend between the U.S. and China had gone “far better than expected” to quote Donald Trump, and the countries agreed to resume talks. In an interview on Tuesday, U.S. Trade Advisor Peter Navarro said that talks with China were moving in “a very good direction” although he added that a deal “will take time”.
- At the end of the week surprisingly strong jobs data was released adding further evidence the U.S. economy remains healthy. In June 224,000 jobs were added indicating a strong bounce back from a weak report in May.
- Our Breadth indicator stayed positive this week but our Momentum indicator, although still positive, ticked lower again.
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