The U.K. Stock market
- The U.K. stock market was higher helped by a strong finish to the week on Wall Street.
- Optimism over a US/China phase-one trade deal was up and down over the week but most analysts seem to agree there are still a number of issues to overcome.
- European earnings season is drawing to a close with approximately half of companies exceeding estimates. The IMF announced that the eurozone is likely to grow less than expected and has called for governments to respond with new fiscal measures.
- Our Breadth indicator turned positive and our Momentum indicator ticked up.
The U.S. Stock market
- The U.S. stock market was higher this week.
- Investors grew more optimistic about a phase-one trade deal between the U.S. and China following a statement from Chinese officials that there had been agreement to cut back tariffs proportionately on both side. However, President Trump told reporters on Friday that he had not agreed this.
- Recession fears seemed to abate and longer-term bond yieds increased sharply.
- Our Breadth indicator stayed positive and our Momentum indicator ticked higher.
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