EUROPEAN SHARES
Equities slid lower in Europe at the beginning of the last trading session of the week, following a mixed market sentiment in Asia, as investors digest the latest batch of disappointing corporate results, ahead of today’s US jobs report.
The optimism felt by traders after dovish hints from central bankers earlier in the week has been dented on Friday after tech giants such as Apple, Amazon and Alphabet disappointed, publishing earnings reports falling short of expectations. Another market driver putting pressure on today’s sentiment so far is the next US NFP release due later in the afternoon.
This month’s report is widely expected to show less job creation than the previous one (from 223K to 185K est.) while unemployment is also estimated to increase, which would make the Fed’s job for a soft landing harder. That said, the situation isn’t significantly dangerous so far from a technical standpoint as the STOXX-50 index register what can be seen as a normal corrective bearish move following the impact on the 38.2% Fibonacci expansion ratio at 4,250.0pts. The market is then likely to pull-back towards newly established support level (4190.0pts / 4200.0pts) before reaching new highs.
Pierre Veyret– Technical analyst, ActivTrades
Source: ActivTrader
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