EUROPEAN SHARES
European shares followed the global trend, sliding lower as the market tested newly established support ahead of another busy week on the macro front.
The STOXX-50 index fell from its new all-time high just below 5,000.0pts to 4,922.0pts, in a technical move boosted by the latest US NFP figures topping expectations.
This price action is seen as “technical” as it tests a previous strong short-term market resistance, while no sign of a significant bearish reversal has been registered so far.
Of course, volatility remains high, and short-term turbulences may come and go, but with the lack of major macro news today, we don’t expect particular directionality in the market.
However, this week is likely to bring its share of sharp price actions as traders brace for CPI data from a wide range of nations, including the US and EU, alongside speeches from ECB officials.
The key challenge for investors will be to assess whether this week’s macro developments will echo the few monetary dovish hints provided last week.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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