EUROPEAN SHARES
Stocks opened mixed in Europe on Wednesday, following a volatile trading session in Asia, while the uncertain market sentiment also spread to US futures. The bullish enthusiasm and appetite for risk is being tempered after investors digested the mixed announcement from Microsoft as the company posted robust Q4 earnings but warned investors about slowing sales output from its cloud computing businesses. This has sparked rising doubt from investors about the true state of the rest of corporate profit releases - especially for tech shares - as many were optimistically pricing solid reports everywhere. In addition, traders also faced poor macro developments this morning after Australia published a 32-year record inflation print, highlighting lingering monetary problems, while the UK also disappointed with poor PPI data. All eyes are likely to be kept towards corporate earnings today, with most investors awaiting Q4 results from Tesla, AT&T, IBM, Boeing, and Alstom among others.
The STOXX-50 index is kept under pressure by the tech and healthcare sectors while prices still trade close to the upper band of their bearish flag pattern, still flirting with the 4150.0pts mark.
Pierre Veyret– Technical analyst, ActivTrades
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