European contracts ticked higher on Tuesday, alongside US Futures and most Asian markets, despite poor Chinese data overnight. Investors are now fully back on “risk-on” trading mode as they are now pricing the end of the coronavirus crisis following yesterday’s encouraging results from a vaccine developed by Pfizer. The fact Joe Biden is now pushing Congress to reach a deal on further stimulus measures is also adding to the current market euphoria. However, the battle has not unfolded yet as investors will still face uncertainty at the end of the week with central bankers from the UK, the eurozone and the US set to meet during the ECB forum on Thursday and on Friday with finance ministers from the G20 group.
Technically speaking, most European benchmarks have cleared major resistances and unlocked further bullish potential as investors switch their exposure from defensive assets. The DAX-30 Index is still trading above 13,000pts with 13,150pts and the zone at 13,450pts the next targets.
