Market Analysis

Markets still remain mixed

European equities initially ticked higher after yesterday’s sell-off. However, this initially bullish move was short-lived as most markets dipped shortly after the opening bell, leading prices close to yesterday’s lows. Investors remain stuck between their appetite for risk and the blurry impact of coronavirus which is leading to mixed market sentiment this week. President Trump tried to reassure investors by saying the US economy was still sound, robust and not yet impacted by the deadly virus. These words were also underlined by NEC Director Kudlow who even said investors should “seriously considering buying the dip”. However, these words were not enough for most investors who are already fearing, if not a direct, at least an indirect impact on US imports/exports in the coming days or weeks. In addition, traders are paying more and more attention to warnings from large international groups, especially after MasterCard and American Airlines both said their profit were getting hurt by the crisis. European markets are mixed so far as the volatility remains high but the directionality is still missing. The FTSE-MIB keeps on registering the eurozone’s worst performance while the French CAC-40 Index as well as the DAX-30 Index from Frankfurt are trading close to today’s opening prices. The most resilient index can be found in London as the FTSE-100 is trading slightly higher than yesterday. Investors’ sentiment towards UK shares may be boosted by the prospect of a UK-US trade deal after UK PM Johnson recently said trade talks with Washington could begin as early as the beginning of March. The market failed to clear the strong zone at 7200pts and is now trading around the 7150pts level, which is the first support before 7115pts. A clearing of the 7200pts zone could quickly lead prices close to 7255pts and 7300pts by extension.

Pierre Veyret– Technical analyst, ActivTrades



Chart Source: ActivTrades platform ActivTrader


*The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication. All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.