EUROPEAN SHARES
Stocks slid slightly lower at the beginning of a new month on Monday, paring some of last week’s gains as traders brace for another batch of significant data. Investors are cautious with a reduced appetite for risk as they await further macro developments ahead of a traditionally volatile market month. Of course, this morning’s disappointing Chinese data and the poor election results for German Chancellor Olaf Scholz over the weekend haven’t helped lift market sentiment.
All eyes will likely remain on this week’s busy economic agenda, with a batch of PMIs, CPI and other major data from many regions, including Europe, China and the US. The highlight will likely be provided on Friday with the highly awaited US NFP report as traders try to assess the pace of the next monetary easing cycle from the Fed.
We expect market volatility to gradually increase throughout the week before a much more directional price action occurs once investors have digested this significant slew of macro data. The STOXX-50 index is testing its 4,950pts support level on the lower bound of its mid-term bullish channel, which started in early August.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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