Share markets climbed almost everywhere this morning, extending yesterday’s gains, with market sentiment improving ahead of today’s FOMC meeting in the US. The “risk-on” mood seems to be back on track with investors focusing on yesterday’s positive US data as well as Apple’s solid results despite disruption caused by the deadly coronavirus. The Federal Reserve is highly expected to maintain rates at their current level, marking a pause to the recent dovish moves from Jerome Powell and providing a positive message about the soundness of the US economy to investors. This set of good news (data + earnings) provides further proof of a global growth recovery and offset fears sparked by the near-term risk of the virus in China spreading.
Banking and mining shares are the best performers so far in Europe with Santander and Vinci the top movers in the Euro Stoxx-50. The IBEX-35 Index in Madrid is at the top of the European board today with the market having closed the bearish gap opened at the beginning of the week. Prices are now challenging the 9,550pts resistance level, which is the first mark before the major one located below 9,640pts, which can only be breached if the market clears its short-term bearish trendline.
