EUROPEAN SHARES
Equities jumped in Europe on Wednesday amid an increasing global appetite for risk as investors cheered on positive developments.
The STOXX-50 trades significantly higher, well above the 4,500.0pts mark, with all sectors in the green, while tech shares are the movers today.
Investors continue to welcome positive stimulus news from China as the PBoC said it would provide more liquidity to the economy by cutting banks’ reserve requirements next month. Furthermore, traders and analysts were pleased to witness strong corporate results from most companies, with results from ASML Holding NV, SAP SE and even Netflix beating estimates.
The corporate front has a major role in the current short term market sentiment. Indeed, the fact that companies keep showing a form of resilience to the lingering hawkish and uncertain environment is reassuring for most investors.
The STOXX-50 index remains well oriented so far, currently challenging the 4,520.0pts resistance, the last one before 4,590.0pts and 4,610.0pts. More volatility may be brought by US PMI and oil inventories data due later this afternoon.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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