- As negotiations between the UK and EU continued with time running out, France warned it could veto a deal if the terms didn’t meet its approval. The UK claimed on Thursday that the EU had introduced new demands and had set the talks back, a claime that EU officials denied.
- The UK became the first country to give authorisation to a coronavirus vaccine, which will hopefully be available within a few days. UK Chancellor Sunak said the approval granted for the vaccine developed byPfizer and BioNTech could mark the start of a rebound from recession.
- The Composite Purchasing Managers Index (PMI) for the UK was revised higher in November. Even so, it still indicates the sharpest downturn since June.
- Our Breadth Indicator stayed positive and our Momentum Indicator ticked higher again.
- Markets are still waiting for a decision on the new stimulus bill but by the end of the week there seemed to be some progress in negotiations with a new proposal seemingly attracting support from both sides of the table.
- Positive manufacturing data from China also helped lift sentiment.
- US Composite PMI for November was revised higher indicating the largest expansion since March 2015. With the recent risk-on tone, the US dollar continued its decline with money managers increasing their short bets to extreme levels.
- Our Breadth Indicator stayed positive and our Momentum Indicator ticked up again.
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