Most benchmarks opened higher in Europe
Most benchmarks opened higher in Europe, despite trendless price action in Asia and a slight pullback on US futures following recent record highs. The trading stance remains bullish as investors continue to cheer strong corporate results. However, the old ghost of inflation is re-emerging in everyone’s minds as many consider the next CPI figures to be crucial, especially in the US where investors remain clueless about the pace of the Fed’s upcoming asset purchases. Traders are then bracing for a busy week with major macro data from the world’s two biggest economies that should keep market volatility on the rise this week.
That said, the Stoxx-50 Index remains well set as the trading band continues to shift higher on a short-term basis. The market is trading above the upper band of its bullish channel while the DMI indicator confirms the bullish acceleration. The next target can be found around 4,500pts (61.8% Fibonacci expansion).
Pierre Veyret– Technical analyst, ActivTrades
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