OIL
In early Tuesday trading, Brent oil prices edged lower, lingering below what appears to be a significant resistance line at the $84 level. Despite Israel's airstrikes in southern Gaza and diminishing prospects of a diplomatic resolution to the ongoing conflict, which continues to loom ominously over the region, the barrel's price decreased. Crude traders appear to have developed a higher tolerance for geopolitical risk in the Middle East and its potential to disrupt global oil supply. Instead, they are focusing on the uncertainties surrounding global economic growth prospects and the anticipated impact of sluggish growth on oil demand.
Ricardo Evangelista – Senior Analyst, ActivTrades
Source: ActivTrader
EUROPEAN SHARES
European benchmarks were on the rise on Tuesday, with most sectors in the green as market sentiment keeps being lifted by dovish hopes. A global wind of relief continues to blow on equity markets this week as investors’ hopes regarding lower borrowing rates in the US grow following the latest US job report. This comes as a major bullish catalyst for riskier assets after investor optimism has been played down for so long by Jerome Powell and other Fed officials.
Even if market volatility remains rhythmed by corporate profits in the short term, we can notice the appetite for risk growing on a global scale. With the lack of significant macro development this week, we can expect this trend to continue further in the coming days. Almost all sectors are edging higher this morning, with top movers found among financial and industrial shares with companies such as Safran, Schneider Electric, Banco Santander and BNP registering the best performances so far.
The STOXX-50 trades in the middle of its short-term range, slightly below the 5,000pts level following yesterday’s bullish impulsion.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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