European stocks are edging higher, alongside U.S. Futures, following a string of good corporate reports. However, these bullish moves on stocks haven’t been registered with significant transaction volumes and no strong technical levels have been cleared yet, making the current very short-term trend a potential “pull-back” before the storm.
Even if Monday showed the biggest one-day drop in global stocks since February 2018, several bearish leverages may indicate the slide is not over yet. Fears of escalating tensions between the U.S. and China linger after Beijing denied U.S. accusation of market manipulation as the nation said the new Yuan rate was decided by the market, not the government. Meanwhile, movements on other asset classes also clearly indicate investors’ lack of interest on stocks as they shifted their focus to other markets like currencies following the surprising decision on rate from the RBNZ and speculations towards the next move on monetary policy from the Reserve Bank of Australia.
Elsewhere, investors will also pay attention to policy maker Charles Evans’ speech (Chicago FED) in the afternoon as they are looking for clues on the FED’s next move. Markets have entered a consolidation phase in Europe, the Stoxx-50 index is heading back towards the 3,330.0pts level and the DAX-30 index is struggling to clear the 11,700.0pts level which could open the way to 11,735.0pts shortly. An increasing market volatility may be observed in the afternoon as investors await U.S. data on crude oil inventories, which could also have a strong impact on stocks.
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.