EUROPEAN SHARES
Shares fluctuated in Europe on Tuesday, despite positive developments from China overnight lifting market sentiment, as investors brace for today's busy agenda.
Most EU benchmarks rose after the opening bell with a fresh boost provided by further hopes of Chinese stimulus measures following a step up from the region's central bank to support the Yuan currency.
However, price action ended this directional move shortly after as investors prepared to digest another batch of significant economic developments brought by today's speech from President Christine Lagarde at the ECB forum in Sintra.
Traders will cautiously analyse the central banker's wording, searching for more hints on where monetary policies will go on the old continent. Moreover, we expect this event to create lingering market volatility throughout the next few days as other major policymakers such as Jerome Powell (Fed), Andrew Bailey (BoE) and Kazuo Ueda (BoJ) will speak at the same forum later this week, likely shaping up market sentiment for the coming weeks.
In addition to the EU monetary policy, investors will likely keep an eye on today's batch of US macro data with New Home Sales, Durable Goods and the Conference Board Consumer Confidence due in the afternoon.
Today's session is then likely to remain volatile, like this morning's open, with potential spikes to be registered depending on the announcements to be made by Christine Lagarde.
Most sectors still trade in the green, with utilities and real estate shares bringing the best performances, while the STOXX-50 index remains close to its 4,300.0pts resistance.
Pierre Veyret– Technical analyst, ActivTrades
Source: ActivTrader
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.