Stocks fluctuated in Europe at the start of the last trading session of the week
Stocks fluctuated in Europe at the start of the last trading session of the week, as lingering macro uncertainties keep investors in a “wait and see”, stance.
Investors are being torn between the major bearish market drivers of higher rates and economic slowdown on one hand, and the temptation to buy shares at a much-discounted price compared to last year, on the other. This has created a situation where everyone would like to buy the market bottom, but no one knows where and when it will be registered.
Uncertainty continues to weigh on market sentiment in the very short-term too, as traders digest the latest mixed signal from Beijing after the Chinese party congress pointed to easing covid restrictions but also rising economic tensions with the US.
Elsewhere, investors have been taken by surprise after newly elected UK PM Liz Truss resigned yesterday after only 45 days in office. This resignation highlights the lingering problems the UK has had over the past few years with its political sphere, which adds pressure to a market sentiment already weighed down by strong economic and monetary challenges. Investors are likely to maintain their focus towards the race to the next PM and a possible new General Election.
The FTSE-100 follows the European trend by trading sideways with lower volatility levels than usual so far. The market remains capped by the 6,945.0pts level while supports can be found over 6,815.0pts, 6,775.0pts and 6,700.0pts by extension.
Pierre Veyret– Technical analyst, ActivTrades
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 (“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 future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.