Shares slid slightly lower for the beginning of the week in Europe despite a positive but calm trading session in Asia overnight. This week begins on a much less volatile tone than what we saw on equity markets last Friday, thanks to thinner volumes due to Martin Luther King Day in the US. In addition to the lack of US investors on the markets, today’s calmer tone is also explained by EU traders digesting the initial trade deal signing as well as the recent set of reassuring data from both US and China. Volatility has surged on oil markets overnight after a pipeline has been shut down by an armed group in Libya and Iraq halted output amid escalating tensions with the US. These geopolitical tensions sparked an immediate reaction on oil-related shares like airlines (British Airways, Air France, Lufthansa etc) and energy (Shell).
Photo by Raphael Maksian.
Apart from this bearish leverage, traders are now focusing on the next batch of earnings reports with Netflix, UBS, Hyundai, IBM and Procter & Gamble this week. Investors will also be looking forward to hear from Christine Lagarde this week as the ECB will decide on rates and set out its plan for the next monetary moves.
Meanwhile, the Stoxx-600 keeps on being weighed down by utilities and media shares with the FTSE-MIB the worst performer. The market is currently trading below 24,000pts after a solid bearish drop right after the opening bell with the next significant level located at 23,900pts.
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.