European markets opened higher for the last trading session of the week as market sentiment is on the rise following yesterday’s ECB announcement as well as the latest positive developments surrounding the U.S.-China trade dispute. Mario Draghi responded to many investors’ hopes yesterday by cutting rate and delivering a new open-ended bond buying program (20Bln EUR per month) which sends the clear message that the ECB will do whatever it takes to protect the euro zone economy from any slowdown and to bring the inflation rate back towards the 2% target.
Photo by Chuttersnap.
In the meantime, traders’ appetite for riskier asset has also been boosted by President Trump’s declaration that he would consider an “interim deal” with China, even if he would prefer to get the full agreement. Lower trade tensions combined with dovish central banks are now the main bullish drivers on the market and are helping to significantly lift stock prices. Next on the investors’ agenda is the next FED meeting next week. Jerome Powell is widely expected to also proceed with another rate cut, which is likely to extend the current rally on stocks.
The DAX-30 index has recently cleared the 12,435.0pts resistance as prices are now heading to their main resistance at 12,472.5pts reached during yesterday’s spike. A clearing of this zone could extend the rally until 12,580.0pts on the near term.
