EUROPEAN SHARES
European shares opened mixed and traded sideways on Friday, as market sentiment remains uncertain at the end of a busy week for traders.
Despite no significant surprise in the latest ECB and Federal Reserve meetings, risk appetite keeps declining in both the US and Europe as market sentiment stays under the pressure brought by the banking crisis, which shows no end in sight. Concerns about the financial system continue to rise with investors now witnessing almost one regional bank failure per week, inducing them to temporarily limit their exposure to equities.
In addition, traders are also bracing for the last major market move of the week with today’s US Nonfarm Payrolls (NFP) report, expected to show a sharp decline in job creation compared to last month (180K expected vs 236K previous). This number is likely to be difficult to assess by most investors considering the current economic context. There is a high chance that "bad news could be good news" for equity traders as an NFP report coming in below expectations could significantly boost dovish bets, as it would reduce the chances of further hawkish moves from the Fed and support short-term market sentiment towards stocks.
Pierre Veyret– Technical analyst, ActivTrades
Source: ActivTrader
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