Daily market commentary: EU benchmarks are trading higher today

Daily Market analysis

ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for September 30, 2019. See details below:


EUROPEAN SHARES

European shares edged higher shortly after the opening bell today, despite a mixed and uncertain trading session in Asia. Markets are still recovering from this week’s fall-out but it seems like sentiment remains solid following this week’s political events in Washington. Stock prices are heading for a not-so-bad end of September after good news regarding the US-China trade dispute, which offset geo-political uncertainty.

Investors welcomed the optimistic tone used by officials from Beijing and Washington after Chinese Foreign Minister Wang Yi announced the nation wanted to proceed with further US products purchases needed by the Chinese market. This, after China recognised Washington’s goodwill following President Trump’s decision to waive tariffs on Chinese products, nurturing hopes on both sides of a positive outcome of the talks set for Oct 10th-11th. Stock prices are likely to stay supported if the current optimism on a trade resolution persists.

With the exception of a directionless FTSE-MIB in Milan, all of the other EU benchmarks are trading higher today. The best performance is that of the FTSE-100 as the UK’s main index benefits from the Pound Sterling drop. The pound lost ground following the BoE’s comments on negative impact a “prolonged high Brexit uncertainty” could have on monetary policy.

Pierre Veyret– Technical analyst, ActivTrades

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