- 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.
The Big Picture 4th December 2020
Market Sentiment 4th December 2020
U.S. Risk Barometer 4th December 2020
Europe Risk Barometer 4th December 2020
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