FOREX
The euro is trading close to a two-week low touched earlier in the session. The single currency is under pressure following the release of disappointing manufacturing and services data for the eurozone. The figures, released on Monday, highlight the recessionary risks that continue to lurk on the horizon. The notably negative readings from Germany, the region’s leading economy, are of particular concern. Against this background, the ECB’s meeting on Thursday comes under the spotlight. A 25 basis points rate hike is all but guaranteed. However, there are growing doubts over what stance will be adopted during the announcement. The economic struggles of the eurozone leave the ECB under pressure and facing the question of whether there is still scope for further interest rate increases later in the year.
Ricardo Evangelista – Senior Analyst, ActivTrades
EUROPEAN SHARES
Stocks continued to trade sideways in Europe on Tuesday as traders brace for earnings from some of the biggest corporations while key central bank meetings loom later this week.
Market sentiment remains muted, and markets trade without clear direction ahead of some of the most significant macro developments brought by the highly awaited monetary decisions from the Fed (tomorrow) and the ECB (on Thursday).
While a lingering hawkish stance from both is broadly expected, the semantics used by these central bankers during their press conference will be cautiously scrutinised by investors, looking for more hints on where the current tightening cycles may end.
Meanwhile, corporate results are likely to continue dominating the agenda and catch investors' focus as they await reports from some of the biggest corporations, starting today with LVMH, EssilorLuxottica, Dassault Systemes in Europe and General Motors, General Electric, Alphabet Inc, Microsoft in the US.
Technically speaking, the STOXX-50 still trades inside its short-term triangle pattern, close to its all-time high and highlighting investors' current "wait and see" stance.
Pierre Veyret– Technical analyst, ActivTrades
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.