European markets extended yesterday’s losses, following mixed sentiment in Asia that saw Chinese benchmarks as the only ones ending in the green for the last trading session of the week.
Appetite towards riskier assets decreased after renewed hints of an uncertain economic outlook this week, reviving recession fears in Europe as well as in the US, as the fight against inflation remains the priority for central bankers.
With the resurgence of this bearish leverage close to year-end, many investors are tempted to take some profits and reassess the degree of risk in their portfolio ahead of 2023. However, this scenario may change through today’s trading session in Europe as equity and FX investors await the latest inflation print, due this morning.
The report isn’t expected to show any major change compared with last month, but a number above or below the 10% mark could significantly impact market sentiment today.
Technically speaking, the STOXX-50 index has already broken-out a major support at 3,850.0pts (23.6% Fibonacci) and now heads further down towards the next at 3,735.0pts (38.2%) before the significant 3,645.0pts mark (50%). The RSI confirmed the bearish breakout while the DMI indicator clearly indicates a resurgence of the bearish pressure, inside a directional movement.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
