Stock markets inched up across Europe this morning following solid gains registered by Asian shares overnight, especially in Japan, where the Nikkeï-225 index closed 1.80% higher. Market sentiment has been boosted by J. Powell’s dovish comments as the central banker assured that the Federal Reserve will act appropriately to sustain the US economy. This, after other FED members expressed concerns about the current trade dispute that could lead to slower economic growth.
The market’s reaction was immediate yesterday and the rise continues today with most investors and analysts now expecting multiple rate cuts by the FED by the end of the year. EU benchmarks are trading in green territory alongside Futures on the S&P 500 this morning as traders keep welcoming the news. Tech shares and the Travel sector are driving the Stoxx-600 index higher. The SMI-20 index in Geneva is the best performer. The Swiss index is trading right below the 9,660.0pts resistance after a solid bullish opening. However, investors might want to stay cautious as most markets become more and more volatile ahead of a busy end of week and, more generally, ahead of the next G-20 summit that will take place in Osaka at the end of the month.
