EUROPEAN SHARES
Stock indices rose in Europe on Thursday, enough to pare yesterday’s losses after bullish enthusiasm towards Chinese tech shares strengthened market sentiment everywhere ahead of key macro data this week.
Confidence in equity markets seems to remain strong so far, with bull traders defending support levels everywhere on the old continent despite the banking turmoil, which was pushed further yesterday after police raided offices of five major French banks as part of an investigation into tax fraud claims. Investors are pricing in bigger liquidity supply as well as a more dovish approach from central banks, in the shape of slower rate hikes and possibly even rate cuts, from central banks, providing a short-term support to market sentiment. However, many investors are already looking toward this week’s new US inflation figures - a key indicator for the Fed in the driving of its monetary policy - in order to have more visibility on where rates will finally sit. Meanwhile, more volatility may be registered in the afternoon, especially towards energy shares, with the release of US pending home sales data as well as the US crude oil inventories.
The Stoxx-50 index currently challenges its first major resistance around 4190.0pts/4200.0pts following a rebound over the 4155.0pts support level. Both EMA act as support to the market while the MACD indicator confirms its bullish turn. The next target for prices can be located towards 4250.0pts, if a clearing above 4200.0pts were to be confirmed by daily close.
Pierre Veyret– Technical analyst, ActivTrades
Stock indices rose in Europe on Thursday, enough to pare yesterday’s losses after bullish enthusiasm towards Chinese tech shares strengthened market sentiment everywhere ahead of key macro data this week.
Confidence in equity markets seems to remain strong so far, with bull traders defending support levels everywhere on the old continent despite the banking turmoil, which was pushed further yesterday after police raided offices of five major French banks as part of an investigation into tax fraud claims. Investors are pricing in bigger liquidity supply as well as a more dovish approach from central banks, in the shape of slower rate hikes and possibly even rate cuts, from central banks, providing a short-term support to market sentiment. However, many investors are already looking toward this week’s new US inflation figures - a key indicator for the Fed in the driving of its monetary policy - in order to have more visibility on where rates will finally sit. Meanwhile, more volatility may be registered in the afternoon, especially towards energy shares, with the release of US pending home sales data as well as the US crude oil inventories.
The Stoxx-50 index currently challenges its first major resistance around 4190.0pts/4200.0pts following a rebound over the 4155.0pts support level. Both EMA act as support to the market while the MACD indicator confirms its bullish turn. The next target for prices can be located towards 4250.0pts, if a clearing above 4200.0pts were to be confirmed by daily close.
Pierre Veyret– Technical analyst, ActivTrades