Daily market commentary: Mixed opening for European markets

Daily Market analysis

ActivTrades’ Market Analysts prepared their daily commentary on traditional markets for February 14, 2020. This is not a trading advice. See details below:


The trading mood lacked certainty at the end of the week with a mixed opening for European markets, with no clear direction nor significant volatility as investors still struggle to digest the recent developments from the Chinese deadly flu. Most traders still lack visibility on the way the virus is spreading in China, especially after a new testing method was introduced this week. The recent data from Beijing show lower new daily cases but still more than before the new testing process was implemented, which provides investors with a blurry picture of the situation.

Large international Chinese groups like Alibaba are starting to express growing concerns on the impact the virus is having on the Chinese economy while the World Health Organization seems to remain confident that there is no spike in infections. In the meantime, market sentiment remains robust in Europe, where utilities are offsetting declines by the healthcare sector on the Stoxx-600 Index, with Engie trading significantly higher.

Investors will keep an eye on the US Retail Sales data for January due later today as well as on the new batch of earnings from large French companies like Credit Agricole, EDF, Renault and TF1. The French CAC-40 Index continues to trade close to its record highs, above the 6,000pts zone. The market is currently consolidating, testing its 34-period exponential moving average, which is the last support before 6,030pts.

Pierre Veyret– Technical analyst, ActivTrades

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