The U.K. Stock market
- The U.K. stock market was higher this week.
- There was a strong end to the week following weaker-than-expected jobs data in the US which increased hopes for a rate cut.
- European Central Bank President Mario Draghi confirmed that the ECB are also ready to implement rate cuts and quantitative easing should they feel it necessary, to support growth.
- Our Breadth indicator turned neutral and our Momentum indicator, although still positive, ticked lower again.
The U.S. Stock market
- The U.S. stock market was higher this week. Equities were strong from Tuesday after Fed Chairman Powell stated that policymakers were paying close attention to the impact of trade tensions on the economy and would “act as appropriate to sustain the expansion.” In fact the futures markets are now pricing in near certainty that a rate cut will happen before the end of the year.
- At the end of the week markets were also lifted by optimism that the US would reach a deal with Mexico and in fact the announcement came on Sunday.
- Friday’s jobs data disappointed, showing that 75,000 jobs were added in May, much less than expected although the unemployment rate remained close to fifty year lows.
- Our Breadth indicator stayed negative this week and our Momentum indicator, although still positive, ticked lower again.
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