EUROPEAN SHARES
EU equities opened slightly lower on Thursday, paring some of yesterday’s gains that reassuring macro developments in the US had brought. Risk appetite seems to be back on track globally after investors cheered on softer US inflation data than anticipated yesterday.
Even though Fed Chairman Powell maintained a cautious stance regarding the next monetary easing cycle during the press conference following the FOMC decision on rates yesterday, investors were pleased to see inflation data trending even lower than estimates.
This is seen as a huge market driver for equity traders as it revives hopes of rate cuts in the US after being played down during the first half of the year. Investors and analysts are now betting on one to two dovish moves from the Fed before 2025 - a situation that could even improve if the subsequent inflation prints were to confirm the downtrend further - and should provide stock markets with a fresh bullish wind for the second half of the year.
Meanwhile, traders are likely to remain data-focused, with today’s US PPI and jobless claims figures alongside speeches from ECB and Fed officials. The STOXX-50 index is now trading back above the 5,000pts level following its sharp rebound over 4,940pts yesterday.
Pierre Veyret – Technical analyst, ActivTrades
Source: 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 (“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.