- The UK stock-market was higher last week. Helping sentiment was a mid-week report from the OECD which stated Global GDP growth is now projected to be 5.6% this year, an upward revision of more than 1 percentage point.
- On Thursday, European Central Bank President Christine Lagarde warned that the coronavirus pandemic was a threat to recovery. The ECB said that over the next quarter it would be setting its pandemic emergency purchase programme (PEPP) at a “significantly higher pace than during the first months of this year”.
- Data released on Friday by the Office for National Statistics shows that UK GDP fell 2.9% in January. This was better than expected with 4.9% forecasted. On Friday, US President Joe Biden signed into law his $1.9 trillion coronavirus relief bill.
- Our Breadth indicator is positive band our Momentum Indicator, ticked back up.
- The US stock-market was strongly higher last week. The week started off on a muted note with the US 10-year Treasury yield holding around its one-year high but many investors remained optimistic after Joe Biden’s $1.9 trillion stimulus package was passed in the US Senate the previous Saturday.
- Stocks were higher on Tuesday, particularly technology shares which bounced back strongly.
- On Thursday the President signed his $1.9 trillion stimulus package into law. The stimulus includes a direct payment of $1400 per person. Bank of America predict this will increase investment in equities from retail traders and lift stocks higher, extending the recent new highs in US markets.
- Our Breadth indicator stayed positive and our Momentum Indicator ticked back up again.
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