UK Stock-Market
- After months of negotiation the UK and the EU reached a post-Brexit trade deal, avoiding the “no-deal” outcome, much to the relief of investors. It may not be the deal most had wanted but at the start of this week markets are reacting positively.
- At the start of the week uncertainty over a new variant of coronavirus which appears to be faster spreading, sent stocks lower in the UK and Europe although stocks recovered as the week progressed. The new mutation appears to be 70% more effective in its transmission and forced the UK government to impose tight lockdown restrictions in London and the south-east of England.
- Both our Breadth indicator and Momentum Indicator stayed positive this week.
US Stock-Market
- The US stock-market opened the week lower on news that a new, and more transmissible, strain of coronavirus was spreading rapidly in the UK.
- However, further news that a deal on a $900 billion stimulus package had been reached provided some respite and the market recovered with small-caps out-peforming large-caps for a third week in a row
- Both our Breadth indicator and Momentum Indicator stayed positive this week.
The Big Picture 25th December 2020
Market Sentiment 25th December 2020
U.S. Risk Barometer 25th December 2020
Europe Risk Barometer 25th December 2020
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This communication is not intended as a recommendation to invest in any particular asset class, security or strategy. Regulatory requirements that require impartiality of investment/investment strategy recommendations are therefore not applicable nor are any prohibitions to trade before publication. The information provided is for illustrative purposes only, it should not be relied upon as recommendations to buy or sell investments.’