Daily market commentary: All EU benchmarks are trading in green

European Shares

European markets edged slightly higher despite an Asian trading session that had a mixed tone overnight. Investors’ appetite for risk decreased towards Asian markets after China released a batch of data, such as retail sales and industrial production, that missed estimates. However, this sentiment doesn’t seem to spreading globally as all EU benchmarks are trading in green territory today, still welcoming the fact US Inflation has peaked, and with hopes the same situation will happen to Eurozone countries.

Meanwhile, bond markets remain stable, and investors are likely to brace for this week’s new batch of macro news that will bring several major data from the US (retail sales, home sales, jobless claims) alongside the FOMC minutes of the July meeting due Wednesday. In Europe, the ZEW sentiment index from Germany and the CPI data from the UK may also support the case for more volatility in the market on Tuesday and Wednesday.

Daily Market Commentary

The Stoxx-50 index is testing its first available short-term support level over 3,775pts following a bullish opening boosted by healthcare and utility shares. This morning’s pull-back on the previous resistance, now seen as a support, may be an occasion for the market to establish a new floor prior to reaching higher highs towards the 3,845pts/3,850pts zone (50% Retracement of this year’s sell-off).

Pierre Veyret– Technical analyst, ActivTrades

Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.


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