The hesitant trading mood at the end of the US session yesterday has weighed on Asian shares overnight and led to a mixed opening on European markets this morning. Everything started yesterday with rising international trade worries brought by Gina Raimondo’s hawkish tone towards Chinese companies. However, the positive economic outlook carried by the reassuring batch of macro data and corporate results is likely to sustain market sentiment in the mid to long-term. This would turn today’s mixed opening into an expected profit taking move, especially after a solid two-day rally on stocks and ahead of major macro releases (BoE’s rate decision, US jobless claims and US NFP).
The CAC-40 Index from Paris is one of the today’s best performers so far with the price challenging the main resistance at 5,588pts (61.8% retracement) as well as the last speedline. A clearing of this level would trigger a further upward move towards 5,640pts and 5,725pts by extension.
