EUROPEAN SHARES
EU stocks slid lower on Friday, amid technical price action as market sentiment takes a break ahead of key data. Buoyed by relief after Thursday’s crucial US data matched estimations, investors initially cheered and took riskier assets to new highs from Tokyo to New York. Since then, the euphoria has calmed down, and corrective moves have taken place on EU benchmarks, a reaction that could be explained by two main factors: a “buy the rumour, sell the news” phenomenon, as well as profit-taking moves ahead of key EU CPI data today. Indeed, today’s CPI release will also be seen as crucial for investors in EU stocks.
Today’s print is expected to show another slowdown in price pressure acceleration, from 2.8% last year to 2.5% in 2024, which should strongly support market sentiment towards riskier assets if confirmed.
While EU inflation figures are expected in the morning, volatility will likely remain high throughout the entire trading session as US manufacturing PMIs loom in the afternoon.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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