European stocks opened quietly this morning following a toneless trading session in Asia, despite a rate cut from the PBoC in Beijing. Investors are now bracing for a period of higher volatility due to quarterly expirations of options across all asset classes.
With this week’s important data releases and central bank meetings now behind us, investor focus is likely to switch back to the US-China trade dispute consequences, especially after the OECD lowered its global growth forecast from 3.2% to 2.9%. Despite some progress in the bilateral talks at the beginning of September which led to a de-escalating tone from both blocs, a lot of work has still to be done. A recent tweet from China Global Time Editor said US officials misread China’s goodwill as a sign of weakness. That message tells investors to remain cautious on stocks as there is still a lack of understanding between Beijing and Washington.
Photo by Lasma Artmane.
A more optimistic wind is, however blowing in Europe after EU Commission President Jean-Claude Juncker said he remained confident about a potential deal with the UK as he received a new proposal from UK PM Boris Johnson yesterday. Juncker said he was ready to consider removal the Irish backstop if objectives were met by Johnson’s proposals. However, he also added the EU was ready in the event of a “no-deal” Brexit.
Sterling continues its rally towards 1.2570 this morning, but this has not pressured stock prices as the FTSE-100 index continued to consolidate inside its 80pts wide trading range. The market is currently trading slightly above its first available support level located towards 7,310.0pts.
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.