European markets drifted lower on Wednesday, alongside US Futures and following a mixed trading session in Asia overnight as rising uncertainty drove market sentiment down. Today’s uncertainty comes from both the new world and the old continent and has put a significant pressure on automakers and banking shares. Investors have first been disappointed by Joe Biden’s words about China after he said he will not remove the tariffs immediately, which spurred concerns over the future of the US-Sino trade relationship. In addition, Brexit talks added to this uncertainty after investors witnessed the possibility of a “no-deal” Brexit following Michel Barnier’s latest comments. Even if no sharp downside price action has yet been seen on European benchmarks, both market volatility and directionality have faded significantly over the past few days, as investors take a break as they wait for clearer clues on where global economies are going.
That said, there remains a good chance that markets will achieve fresh highs as soon as the current short-term uncertainty lifts. The Stoxx-50 Index is still trading sideways between the strong 3,475-3,500pts level and the first available resistance at 3,535pts.
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.