EUROPEAN SHARES
Stock benchmarks slid lower shortly after the opening bell on Thursday, following the trend registered overnight in Asia, despite positive monetary signals sent by the Federal Reserve yesterday. Market sentiment has been negatively impacted by this morning's batch of data coming from Asia, with the Chinese PMI falling short of expectations, leading to increasing uncertainty about the health of the world's second-largest economy.
Risk appetite is declining this morning in the Eurozone as investors seized the occasion to rebalance their portfolios ahead of this afternoon's batch of crucial developments in the UK and the US. However, today's early moves are not yet seen as too threatening. Market volatility remains high, as expected, and it is not too concerning to see swings during such a busy week deep into the summer season.
Fundamentals are improving for riskier assets after investors witnessed Jerome Powell saying the Fed could cut rates no later than September, while investors also noticed lower inflation figures in the Eurozone. With that in mind, markets will likely test the newly established support levels, having a break ahead of crucial data today and tomorrow, with the US NFP as the main event for the end of the week.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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