- Negotiations between the UK and EU resumed at the start of the week. Boris Johnson and EU Commission President Ursula von der Leyen met on Wednesday but the meeting provided no breakthrough with “very large gaps” seen between the two over key issues. A deadline was set for Sunday to settle the matter but this has come and gone with an announcement that the EU and the UK will go the “extra mile” and the deadline for a post-Brext trade deal has again been extended.
- On Tuesday the UK became the first western nation to begin rolling out the Covid-19 vaccine.
- The ongoing Brexit uncertainty along with news that London could be moved to a tier three level of restrictions sent the Pound lower at the end of the week.
- Our Breadth indicator turned neutral this week but our Momentum Indicator stayed positive and ticked higher.
- The US stock-market was lower this week on concerns that negotiations over a new US stimulus package remain stalled. Senate Majority Leader Mitch McConnell said both sides in the negotiations were “still looking for a way forward”. It appears there are sections in the proposal that will not meet with approval from a large number of Republicans.
- Increasing Covid-19 cases also weighed on the market but approval of the Pfizer-BioNTech vaccine on Friday by US regulators means the vaccine can now begin rolling out.
- Our Breadth indicator turned neutral this week but our Momentum stayed positive and ticked higher.
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