UK Stock-Market
The UK stock-market was higher last week extending October’s bounce back from the decline in September.
UK Gilt prices saw their biggest one-day price rise since March last year after the Debt Management Office (DMO) reduced its bond issuance by a much larger degree than expected.
European inflation data showed that prices had risen 4.1% in the year to October, more than twice the ECB target. Christine Legarde, ECB President, said that inflation could “take longer to decline than initially expected”.
Our Breadth Indicator stayed neutral but our Momentum Indicator ticked back up.
US Stock-Market
Large caps out-performed in a strong week as the US stock-market hit new highs again.
Investors focused on the strong third quarter earnings season rather than inflation concerns with more than 80% of companies that have reported in the S&P 500 so far (over half) beating estimates, although Apple and Amazon both disappointed.
A big week for data this coming week with the Fed FOMC meeting on Wednesday and the non-farm payrolls report on Friday. The Fed is expected to announce the start of its tapering program – could be some volatility.
Our Breadth Indicator stayed negative but our Momentum Indicator ticked higher for the first time in seven weeks.
The Big Picture 29th October 2021
Market Sentiment 29th October 2021
U.S. Risk Barometer 29th October 2021
Europe Risk Barometer 29th October 2021
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