EUROPEAN SHARES
European shares climbed higher on Wednesday as investors cheered on corporate results and macro data. Market sentiment strengthened for the third trading session in a row after traders witnessed another batch of reassuring corporate results, with Siemens and Anheuser-Busch InBev NV’s strong Q1 earnings. At the same time, the German Industrial Production data also topped estimates this morning.
It feels like the stars are aligning for stock investors this week as appetite for risk gets fueled further by solid macro data, strong earnings and the prospect of rate cuts in the US. Everything is falling into place for an equity comeback after a few weeks of uncertainty that drove benchmarks into correction territory in April. The STOXX-50 index is trading back above the 5,000pts level, challenging its short-term resistance around 5,035.0pts for the third time, driven higher by Consumer Non-Cyclicals, Healthcare and Basic Materials shares.
A bullish break-out of this level would open the doors for an extended market rally towards the last historical high above 5,110pts on a short-term basis. Without any major news in today’s macro agenda, we expect the market to remain directional with lower volatility spikes.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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