EUROPEAN SHARES
European shares slid lower on Tuesday as risk appetite takes a break ahead of Nvidia’s earning report and further macro developments. The STOXX-50 index pulled back towards its major short-term support zone between 5,040pts and 5,053pts, weighed down by most sectors with the worst performers among consumer non-cyclicals and utility stocks this morning.
The lack of major macro news following last week’s batch of data and ahead of tomorrow’s corporate results from Nvidia and the FOMC’s monetary decision next week provides investors with the perfect opportunity to catch their breath, leading most benchmarks into a consolidation phase. Of course, volatility spikes may occur locally alongside speeches from Central Bank officials around the world this week, but it seems that the overall trading mood remains towards the “wait and see” stance.
The pan-European index is trading inside a short-term bearish flag pattern, usually seen as a configuration of continuation, consolidating following the strong rally registered in the first half of the month.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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