UK Stock-Market
- UK and European markets rose early in the week after Janet Yellen, former Chair of the US Federal Reserve, was nominated as Treasury Secretary in Joe Biden’s administration.
- Stocks also reacted positively to news that the Trump Administration was beginning an orderly transition of power and that an effective coronavirus vaccine was said to be imminent. However, the rally slowed later in the week after the UK extended coronavirus restrictions.
- In his review on Wednesday, Chancellor Rishi Sunak introduced controversial spending cuts and warned that the UK economic emergency “has only just begun”. Forecasts are predicting the biggest economic decline in 300 years with the UK economy expected to shrink by 11.3% this year.
- Our Breadth Indicator stayed positive and our Momentum Indicator ticked higher again.
US Stock-Market
- The US stock-market was higher this week on political optimism and hopes that an effective coronavirus vaccine would soon be rolled out.
- Joe Biden’s selection of Janet Yellen as his administration’s Treasury Secretary and news that the Trump administration had accepted Biden’s transition into office were also well received.
- The upbeat tone of the market receded a little mid-week with investors in no rush to commit ahead of the US Thanksgiving break. Disappointing US unemployment numbers didn’t help. The data indicates there were 778,000 initial jobless claims in the previous week which was worse than economists were expecting.
- Our Breadth Indicator stayed positive and our Momentum Indicator ticked back up.
The Big Picture 27th November 2020
Market Sentiment 27th November 2020
U.S. Risk Barometer 27th November 2020
Europe Risk Barometer 27th November 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.’
