- The UK stock-market ended the week a little lower than the previous week. The Bank of England left interest rates unchanged, at least until it sees “clear evidence that significant progress is being made in eliminating spare capacity and achieving the 2% inflation target sustainably.”
- Europe restarted the use of AstraZeneca’s vaccine after endorsement from the European Medicines Agency but investors remain concerned about a resurgence in coronavirus infections across the region.
- Our Breadth indicator stayed positive but our Momentum Indicator, although still positive, ticked down again.
- The US stock-market was lower last week. The early part of the week was muted as investors cautiously waited for the Fed to deliver its latest forecasts for the US economy on Wednesday, at the conclusion of their two-day meeting.
- As it turned out the Fed said it does not expect to be raising interest rates before the end of 2023. Real GDP growth is now expected to grow 6.5% in 2021 (up from an expectation of 4.2% in December) and inflation is anticipated to rise to 2.4% this year.
- Following the announcement, the 10-year Treasury yield reached 1.67%, a 14-month high, and stocks fell to the end of the week. At the start of this week the yield remains close to that level. Fed Chairman, Jerome Powell, is due to speak on Tuesday.
- Our Breadth indicator stayed positive but our Momentum Indicator ticked back down again.
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