Stocks opened significantly higher in Europe this Wednesday, validating some key technical support levels, while Asian markets closed on a mixed tone and US Futures remained steady. The global sentiment towards riskier assets remains uncertain for the end of September and is the reason for the current lack of market directionality as well as the neutral mid-term trends over European assets.
While most European indices remain neutral to bullish and haven’t broken any significant support levels so far, the FTSE-100 Index in London remains deeply impacted by both Brexit and the prospect of another lockdown, especially after the UK Government said this option couldn’t be ruled-out. Even if the market is trading 1.3% higher today, boosted by healthcare and tech stocks, prices have already retraced 38.2% of the bullish trend registered between March and June. Now traders fear demand could soon drop in the energy and travel & leisure sectors before year-end if further restriction measures are implemented.
