European shares registered a modest advance on Tuesday
European shares registered a modest advance on Tuesday, despite Asian stocks closing on a mixed tone, while US Futures fluctuate.
Most EU benchmarks are holding their gains on Tuesday, trading above new support levels with tech shares offsetting losses in the banking sector.
An increasing number of investors now see more upside risk in the market than they used to. Hopes that the “worst is behind” for stocks are being fuelled by bets of an incoming “pivot” from the Federal Reserve, and are driving anticipation of slower inflation rates, ahead of next week’s meeting. In addition, investors are also cheering solid corporate results so far, with most companies outperforming expectations and showing resilience to the current uncertain economic context.
However, even if optimism remains alive, investors are likely to need concrete evidence of monetary and economic improvements before driving stock indices higher. Until then, it’s only investors buying rumours.
Pierre Veyret– Technical analyst, ActivTrades
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