Share markets are trading significantly higher in the last trading session of the week with the trading mode set to “full risk-on”. This sudden boost to risky assets has been built by two main drivers: the strong UK election results and approval of the US-Sino phase one deal by President Trump. Volatility and, more importantly, directionality are now back on track as most benchmarks are now heading for a Christmas rally with traders targeting higher tops.
Unsurprisingly, the FTSE-100 Index in London is the best performer in Europe, boosted by higher confidence in the UK’s future economic outlook following the Tories’ strong victory overnight. The gains are even more noticeable on the FTSE-250 Index, with the companies on this broader index much more representative of the UK’s domestic economy. Prices are now trading well above 21,500pts at 21,680pts. These moves send the clear message that traders who have been avoiding UK assets for the past three and a half years are now welcoming the new mid-term clarity brought by such a result. However, after this solid reaction investors will now be waiting cautiously for the next commercial developments in both Europe and the US, and this will cap gains for UK assets in the mid-term.
While a student, Pierre Veyret had a passion for the financial markets. At the time, he studied International Trade through the setting up of import / export operations and it was the techniques of hedging against exchange rate risks that helped him to make the link with the financial markets, and all especially that of Forex. It is therefore with the aim of anticipating the price of currencies several months in advance that Pierre quickly turned to different methods of analysis by drawing inspiration and surrounding himself with experts in the field. Shortly after, Pierre decided to specialize in Technical Analysis, a discipline he had the opportunity to practice with real market professionals, thanks to AFATE / IFTA, an association of which he has been an active member for several years. Pierre Veyret is passionate about the field of the financial industry with a particular interest in the various techniques of stock market forecasting. Currently, Pierre is based in the City of London where he works as Chief Analyst. He performs regular interventions on a multitude of asset classes through various media (television, internet and print media).
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© 2019 High Leverage FX - All Rights Reserved.