The U.K. Stock market
- UK and European stock-markets were higher this week. Positives included biotech firm Moderna announcing encouraging news regarding its trial of a potental coronavirus vaccine saying it produced a “robust” immune response and data which showed that China’s GDP grew by 3.2% in the second quarter, beating expectations.
- The European Central Bank left monetary policy unchanged during its July meeting, as policymakers took a wait-and see approach to assess the effectiveness of a series of unprecedented measures taken over the past four months to support the bloc’s economy amid the coronavirus crisis.
- On Friday, EU leaders met for a two day meeting in Brussels to discuss a proposed coronavirus recovery package.
- Our Breadth indicator turned positive this week and our Momentum indicator, is also in positive territory.
The U.S. Stock market
- The US stock-market was higher again this week. Investors were encouraged by positive news from Moderna Therapeutics and Oxford University researchers that their trials of potential coronavirus vaccines had produced positive results. Anthony Fauci, coronavirus adviser to the White House, said he believes the US will have a vaccine by the end of the year.
- Earnings season kicked off this week with analysts expecting profits for companies in the S&P 500 to have contracted 44% over the quarter relative to the same quarter last year.
- Our Breadth indicator stayed positive this week as did our Momentum indicator.
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