EUROPEAN SHARES
European shares slid lower on Tuesday as investors preferred to temper their risk exposure while digesting the latest macro developments. Market sentiment was under pressure after investors received hawkish hints from ECB officials Lagarde and Lane, who said they need more evidence that inflation is ticking down in the region. With monetary policies still seen as the most important market driver for stocks, such news’s impact doesn’t surprise, especially as key EU CPI data looms this morning.
The YoY inflation data is widely expected to show a slight decrease from 2.6% to 2.5%, and any figure outside of that window could significantly affect price action and lead to spikes across a wide range of assets today. Meanwhile, investors have struggled to find more reasons to remain long on equities as political uncertainty in Europe and the UK lingers this week.
The STOXX-50 index pulled back towards 4,900pts, dragged down by almost all sectors, with the worst performers among financial and healthcare shares. Again, we knew this week’s busy macro agenda would be challenging for stock investors to assess, and it is translating into increased market volatility for traders.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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