EUROPEAN SHARES
Stocks opened slightly lower in Europe on Wednesday, paring some of the gains registered during the best trading session of the year yesterday, as investors start digesting the first batch of earning reports for Q3.
LVMH has weighed both the CAC-40 and STOXX-50 indices down during the first exchanges of the trading session after investors were disappointed to see the luxury giant delivering results falling below expectations, kicking off the new earnings season on a less optimistic foot than many were hoping.
However, the overall risk-on sentiment stays alive as the market quickly rebounded from its technical correction, with market sentiment still being supported by the recent batch of positive developments on the monetary front and German CPI data in line with expectations this morning.
Today’s focus will likely be on US data, with the new PPI report and FOMC minutes of the last policy meeting due later this afternoon, while another batch looms in Europe and the US for the rest of the week.
On the technical side, the STOXX-50 index failed to clear the 4,200.0pts level and may pull back towards 4,165.0pts to test the newly established floor while investors wait for further from the macro and corporate front.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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