EUROPEAN SHARES
European shares tumbled for the last trading session of the week, extending losses registered in China overnight, as investors struggle to digest an uneven global macro picture. European stock investors remain under the pressure of political uncertainty in the region, with market sentiment still weighed down by the snap election triggered by French President Macron following his party’s crushing defeat against the far-right during the latest EU Parliament elections.
Havoc has seized investors’ trading minds following the turbulent developments in the French political sphere over the last 72 hours. With rising uncertainty in the second-largest EU economy, investors are seeking safety and temporarily tempering their allocation to stocks in the region. Meanwhile, traders are still struggling to digest the recent monetary developments in the US, with a divergence between the recent reassuring CPI report and the lingering hawkish narrative from the Fed not helping investors to get a clear picture of the likely outlook for interest rates.
The French CAC-40 index is the worst performer in the Eurozone so far, weighed down by most sectors. The sell-off continues further as the market has broken out of a key support level following a double-top reversal chart pattern, with prices now trading below the 7,600pts level.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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