EUROPEAN SHARES
Stocks slid slightly lower in Europe on Monday despite a strong Asian session and ahead of another busy week on both the macro and corporate fronts. The STOXX-50 index has registered mixed sectorial performances so far, leading prices into a very short-term pull-back, correcting some of the gains seen at the end of last week.
Investors are braced for this week’s busy agenda with EU CPI data, decisions on rates from the BoE, BoJ and the Fed, US non-farm payroll, and another batch of earnings reports, with the US mega tech in focus. With that in mind, we expect market volatility to remain throughout the week, as these market drivers should have an impact across a wide range of assets.
However, things aren’t so concerning from a technical point of view. The STOXX-50 index trades below a short-term bearish trendline, but the bullish divergence and the anticipated bullish breakout registered with the RSI indicator suggest that risk appetite is increasing.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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