The U.K. Stockmarket ended the week lower.
- As expected, the Bank of England raised rates to 0.75% and kept it’s growth forecast for 2018 unchanged at 1.4%.
- According to the ONS UK households are accumulating billions of pounds of debt. Economists are warning that the trend is unsustainable as interest rates rise.
- Our Breadth Indicator turned negative this week and our Momentum indicator ticked lower again.
The U.S. Stock market was higher this week.
- Investors focused on strong second quarter earnings rather than the escalating trade dispute with China. More than 80% of S&P 500 companies have now reported with the majority beating estimates.
- Friday’s nonfarm payroll report was below expectations but showed that the unemployment rate had fallen near to its lowest in fifty years.
- At the Fed meeting this week interest rates were not raised but recent strength in the economy was noted – increasing the odds of a hike next month.
- Our Breadth indicator turned positive and our Momentum indicator ticked up again.
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