Daily market commentary: Stocks are drifting lower in Europe today

Daily Market analysis

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


The Pound lost approximately 1% of its value, in relation to the US Dollar, following yesterday’s votes in the British parliament. Lawmakers delivered a mixed verdict, approving the Brexit withdrawal bill but rejecting the government’s proposed timetable for its implementation, meaning that almost certainly there will be a new Brexit extension. The markets reacted negatively to this latest delay, because it means more uncertainty, with the likelihood of a UK general election before the end of the year. However, Pound losses were only a fraction of the gains accrued during the last 10 days, meaning the markets still believe a negotiated Brexit to be the most likely outcome for the process.

Ricardo Evangelista – Senior Analyst, ActivTrades


Stocks are drifting lower in Europe this morning, alongside US Futures, as investors faced disappointing earnings, rising geopolitical tensions and Brexit uncertainty following yesterday’s vote in the British Parliament. A global rout in tech shares has been sparked by Texas Instrument’s Q3 results Q4 forecasts. The American tech giant disappointed investors with an 11%drop in Q3 sales and with Q4 revenues estimates significantly below market expectations. in Europe, market sentiment was also hit by Swiss Industrial ABB, which missed Q3 forecasts and posted a major loss for the quarter, on the back of a 15% decline in net income.

In the UK, investors are in standby as they await a decision from the EU of whether to grant another Brexit extension.

All these factors are prompting traders to reduce their exposure to stock markets and take some profits after the solid rally observed this month. However, the bullish trends remain valid and more moves are likely after tomorrow’s ECB meeting which may product further monetary stimulus.


The German stock market didn’t escape the sell-off in tech shares and this sector is the worst performer in Frankfurt this morning with Infineon Technologies AG at the bottom of the board. On the other end of the board Materials, Health Care and Industrials shares outperforming the index with companies like HeidelbergCement AG, Fresenius Medical Care Ag and Siemens AG leading the charge. Despite today’s cautious trading mood, the DAX-30 index hasn’t broken any significant price level so far. A solid rebound has even been registered over the 12,650.0pts zone, sending prices higher and closer to the last week’s tops at about 12,800.0pts.

Pierre Veyret– Technical analyst, ActivTrades

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