- The UK stock-market was strongly higher in a holiday shortened week helped by data released from IHS Markit which showed UK Services PMI (purchasing managers index) at a seven month high of 56.3 and news that Toshiba is contemplating a takeover deal said to be worth $20 billion from a British private equity fund.
- For the second time in three months the IMF (International Monetary Fund) lifted its forecast for global expansion in 2021 to 6%.
- A fall in the Pound was attributed to profit taking after a strong run this year but there are also some concerns from investors over next month’s elections and whether the SNP will get the go-ahead from the Scottish electorate re another independence referendum.
- Our Breadth indicator stayed positive and our Momentum Indicator, tick back up.
- The US stock-market was higher this week with the tech-heavy Nasdaq out-performing.
- The week started on a positive note following strong monthly jobs data released on the previous Friday which was a holiday. US non-manufacturing PMI data, also came in much better than expected.
- Sentiment was given a further boost by minutes from the Fed’s latest meeting which showed that the US central bank intends to stick with its current accommodative policy for some time yet. On Thursday after Fed Chair Jerome Powell said the US was “on track to allow a full reopening of the economy fairly soon.”
- US Investors will also be closely monitoring developments over President Biden’s new $2.25 trillion infrastructure plan which is likely to receive significant Republican opposition. When President Joe Biden was asked if he would consider negotiating on his proposed corporate tax of 28% he replied “I’m willing to listen to that”.
- Our Breadth indicator stayed positive and our Momentum Indicator ticked back up.
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