Shares are climbing in Europe despite a mixed trading session in Asia. Investors are still digesting the latest trade talks news as President Trump doesn’t seem to be in a hurry to solve the dispute with China. However, this isn’t having a significant impact on stock prices at the moment; market sentiment seems upbeat as most traders maintain their focus on what they expect will happen at the end of the week.
EU flash PMI data is due tomorrow, but most investors are awaiting the Jackson Hole meeting during which Jerome Powell’s speech will be scrutinized for more clues on monetary policy, especially after President Trump called for another “big” interest rate cut. The G7 meeting in France, where world leaders are to discuss the weakest global growth since the financial crisis, will also be very important as investors will pay attention to possible structural reforms to tackle a global slowdown.
Photo by Soroush Karimi.
In Europe, Carmakers are leading the board helping the Eurostoxx-50 index to move higher today. But while the market is trading higher prices remain capped by the strong 3,375.0pts resistance level, the last one before 3,400.0pts.
Italy’s political turmoil, after Prime Minister Giuseppe Conte’s resignation yesterday, doesn’t seem to scare traders as the FTSE-MIB index of Milan is registering the best performance of the Euro-zone with prices trading well above 20,600.0pts at 20,760.0pts currently. The next resistance level is located 100-points higher around 20,860.0pts while the first available support is slightly above 20,730.0pts.
