UK Stock-Market
- UK and European stock-markets struggled last week with rising bond yields raising concerns about the sustainability of the rally in equities and the possibility that investors may begin looking elsewhere for their returns.
- Boris Johnson announced plans to ease restrictions in the UK saying the roadmap would allow the government to “cautiously but irreversibly” begin lifting the lockdown.
- The Pound rallied further, printing above 1.42 against the US dollar by mid-week, the highest level since April 2018, although it has fallen back since then.
- Our Breadth indicator stayed positive but our Momentum Indicator, although still positive, ticked down again.
US Stock-Market
- The US stock-market was sharply lower last week as nervousness increased over rising bond yields and inflation fears.
- Markets bounced on Wednesday following supportive comments by Fed Chair, Jerome Powell, that the Fed remained committed to current policy, but stocks weakened significantly by the end of Friday.
- On the data front, US jobless claims came in better-than-expected as did durable goods orders; good news for the economy but not necessarily for the stock-market.
- Investors have become increasingly nervous recently that rising US Treasury bond yields will see the Fed raising interest rates. The 10-year T-note reached 1.6% last week, it’s highest in more than a year, although the yield has dipped back below 1.4% at the start of this week, initiating a bounce-back rally in equities today.
- Our Breadth indicator stayed positive but our Momentum Indicator, although still positive, ticked down again.
The Big Picture 26th February 2021
Market Sentiment 26th February 2021
U.S. Risk Barometer 26th February 2021
Europe Risk Barometer 26th February 2021
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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.’