- At the start of the week UK stocks saw big gains after Pfizer announced that the first interim results in large-scale trials showed its candidate vaccine against Covid-19 was 90% effective. Global sentiment was also supported by Joe Biden’s victory in the US presidential race.
- On the Brexit front, talks resumed in London and the House of Lords voted to reject the government’s plans to break international law.
- Weaker-than-expected UK GDP data showed that the economy grew by only 1.1% in September. Finance minister Rishi Sunak warned that the latest lockdown measures had likely slowed growth even more since then. The UK jobs report showed the unemployment rate jumped to a four-year high of 4.8 percent in the third quarter.
- EU negotiators moved a step closer to finalising a landmark 1.8 trillion-euro stimulus package. ECB President Christine Lagarde indicated that the central bank would expand its pandemic emergency purchase program (PEPP).
- Our Breadth Indicator turned positive and our Momentum Indicator, although still negative, ticked higher again.
- Markets opened the week higher after Joe Biden declared victory in the US presidential race. President Trump refused to concede saying it’s “far from over”. He claims fraud and has launched lawsuits in several states. A joint statement from election officials and experts said the the election “was the most secure in American history.”
- There was sharp pullback in technology stocks on Monday and Tuesday as the rotation out of the sector continued, but there was a bounce back later in the week.
- US coronavirus cases rose sharply elevating concerns over economic recovery despite the optimistic vaccine news. Fed Chairman Jerome Powell said the virus posed a risk to the “solid path of recovery.” The global coronavirus pandemic has now infected more than 51 million people and claimed over 1.2 million lives.
- Our Breadth Indicator stayed positive and our Momentum Indicator ticked higher for the first time in fourteen weeks.
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