EUROPEAN SHARES
European stocks fluctuated on Friday, holding gains ahead of today’s batch of key US data.
Risk appetite remains strong after this week’s positive developments on the monetary front from Europe and the US, despite mixed corporate results and lingering geopolitical worries in the Middle East.
Investors are cheering on dovish hints provided by central bankers, highlighting the importance of this market driver for stock, FX and Bond traders.
However, more market volatility is likely for the last trading session of the week as a batch of crucial US data looms.
Investors and analysts are waiting for today’s PMI data, alongside the unemployment rate, average hourly earnings, and the NFP report for October, which is widely expected to display a solid drop from 336K in September to 180k job creations last month.
Technically speaking, the STOXX-50 index has now cleared its bearish mid-term trendline, opening the door to a bullish trend resurgence or a mid-term lateral consolidation at least. In the shorter term, the market has also cleared the 38.2% Fibonacci ratio at 4,180.0pts, which paves the way for a higher target located above 4,240.0pts (50%) and 4,300.0pts (61.8%).
Pierre Veyret – Technical analyst, ActivTrades
Source:ActivTrader
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