UK Stock-Market
- Early in the week London moved to a higher tier of coronavirus restrictions and this weekend even more severe lockdown measures were implemented in London and the south-east of England. Uncertainty over a new variant of coronavirus which appears to be faster spreading has sent stocks lower in UK today.
- The Pound has also fallen sharply as some European countries shut their borders to UK travellers.
- Negotiations between the UK and the EU over a post-Brexit trade deal remain unresolved and could be complicated further by the situation. Ursula von der Leyen, European Commission President, said on Friday that there is a “narrow path” for the UK and EU to negotiate a deal. Boris Johnson said it is a “serious situation” and is looking for a compromise from the EU on fisheries.
- Both our Breadth indicator and Momentum Indicator stayed positive this week.
US Stock-Market
- The US stock-market was higher last week, helped by approval of the Pfizer-BioNTech vaccine.
- Senate Majority Leader Mitch McConnell congratulated Joe Biden for the first time, thus acknowledging Biden’s victory in the US Presidential election.
- The Federal Reserve stated on Wednesday that the US economy would continue to be supported by its bond buying program “until substantial further progress has been made toward the Committee’s maximum employment and price stability goals.”
- been made toward the Committee’s maximum employment and price stability goals.” At the start of this week news that a deal on a $900 billion stimulus package has finally been reached and is expected to be voted on today, has provided some respite from the negative news elsewhere.
- Both our Breadth indicator and Momentum Indicator stayed positive this week.
The Big Picture 18th December 2020
Market Sentiment 18th December 2020
U.S. Risk Barometer 18th December 2020
Europe Risk Barometer 18th December 2020
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