Daily market commentary: Shares are edging higher in Europe

Daily Market analysis

ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for July 23, 2019. See details below:


The Pound is down almost 0.3% to the US Dollar, trading at around $1.24, on the day when the next British Prime Minister will be announced. It is widely expected that Boris Johnson will emerge victorious when the results of the Tory leadership election are announced later today. There are several challenges awaiting the next Prime Minister: growing tension in the Gulf, a potentially shrinking economy, but none as important as Brexit. Mr Johnsons stance is well known: deliver Brexit, do or die, and this is probably why the Pound is on the back-foot today, because under a Boris Johnson premiership a no-deal exit from the EU becomes more likely.

Ricardo Evangelista – Senior Analyst, ActivTrades


Shares are edging higher in Europe following gains registered overnight in Asia as market sentiment seems to be back on track this week. Investor appetite towards stocks has been recently boosted by potential trade developments next week after Washington confirmed a visit for a first face to face meeting since the last G20 in Osaka.

In addition, investors have also welcomed the deal reached between President Trump and Congress that will extend the debt limit and 2-year budget. However, volatility is poised to rise with several large companies from different sectors reporting their results today. Also later today, the EU Consumer Confidence and the US Richmond FED Index will be released. This data is likely to have a significant impact on currencies and, mechanically, on stocks as well.

For now, the Stoxx-50 index continues to flirt with the 3,500.0pts level while the DAX-30 index is registering the best European performance. However, the German index currently faces a strong technical resistance zone located between 12,380.0pts and 12,400.0pts which should contain the market for the rest of the day.

Pierre Veyret– Technical analyst, ActivTrades

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