EUROPEAN SHARES
European benchmarks opened volatile on Tuesday, despite an overall positive sentiment registered in Asia overnight, as market sentiment remains uncertain ahead of the next ECB meeting.
The bullish wind from China, brought by the prospect of a stimulus package to the economy, hasn’t reached the West as most EU indices slid lower following another hit on key resistance levels. Almost all sectors were in the red shortly after the opening bell, except energy shares, which still benefit from the prospect of disrupted supply chains due to lingering uncertainties in the Middle East following the latest round of US-UK attacks on Houthi targets.
Everywhere else, investors are not ready to take benchmarks to new highs yet, tempering their appetite for risk ahead of key ECB meetings and corporate earnings reports. Today’s trading session will likely remain “technical” rather than macro-driven as the agenda doesn’t include any significant economic data for EU stocks. However, volatile price action towards US shares may be expected in the afternoon as investors await a batch of corporate results, including Netflix, 3M, Johnson & Johnson, and General Electric.
The STOXX-50 trades inside its first support zone between 4,457.0pts and 4,467.0pts, where a break-out could significantly dent hopes of a bullish continuation.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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