EUROPEAN SHARES
Share markets fluctuated in Europe on Wednesday, holding gains as traders await the FOMC’s decision on rates.
Most European benchmarks have registered slight pull-backs over newly established floors on mid-week, as some investors took profit following a +200pts rally on the STOXX-50 and ahead of today’s FOMC meeting. Even though most equities have traded sideways since the opening bell, the boost to market sentiment provided by coordinated central bank action remains as the strongest market driver for traders so far. Market volatility is likely to remain high as investors wait for monetary policy hints with today’s decision on rates and press conference from the FOMC. A 25-basis point rate hike is now widely expected by market operators, many will however pay close attention to the wording used during Fed Chairman Jerome Powell’s speech. The central banker is expected to adopt a less hawkish approach on monetary policy in order to ease worries sparked by the turbulence in the financial sector over the last few days, which could support the case for further market tops for equities.
The STOXX-50 index is trading sideways between 4,170pts and 4,205pts following the impact on the 61.8% retracement ratio, with today’s slowdown highlighted by the stochastic indicator, while both EMA (13 and 21) rise following a bullish cross.
Pierre Veyret– Technical analyst, ActivTrades
Source: ActivTrader
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