Most European shares traded higher on Monday, despite a bearish trading session overnight in Asia, while US futures point to modest gains at the open.
Stock benchmarks are getting back some of the ground lost over the past two weeks, edging higher across almost all sectors for the last significant week of the year.
However, even if investors try to push stock indices higher, boosted by expectations of a Christmas rally, global sentiment towards riskier asset remains fragile.
Indeed, as central banks are now expected to push their monetary tightening curb further, investors will keep on pricing more economic impact and damages to corporate profit.
This should maintain significant pressure to those markets until the next earning season, which makes the short- to mid-term outlook for stocks difficult to assess. That said, a bullish leverage from China may provide a boost towards equities this week after Beijing abandoned its “Covid Zero” policy and pledged more growth in 2023.
The STOXX-50 index trades above 3,800pts but still below its first available resistance at 3850.0pts. The bearish pressure continues to drive the market despite’s today’s correction, and the next support remains over 3,735pts, 3,676pts and 3,645pts by extension.
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.
