Shares climbed significantly higher shortly after the opening bell in Europe this morning, following a positive session across Asia. Market sentiment has been boosted by very strong economic data (GDP, retail sales and industrial output) out of China overnight which beat all estimates, and investors welcomed signs that the economy is stabilizing. Despite this morning’s positive tone, traders still face a very busy week.
The corporate earnings season, which allows investors to gauge the health of the economy, will officially start with Citigroup’s results due today. Traders will also keep a close eye on more economic data this week, with the German ZEW sentiment and the US retail sales out tomorrow as well as several speeches from FED members, including Jerome Powell.
Taking all of this into account, we expect market volatility to be on the rise throughout the week but do not expect European stocks to be significantly directional ahead of next week’s ECB meeting. The Stoxx-50 index continues its slow move towards 3,500.0pts while the DAX-30 jumped 100-points higher at 3,440.0pts, boosted by the solid Chinese data.
In London, the FTSE-100 registered very volatile moves as the British benchmark remains under pressure due to the current lack of leadership as Tory party members continue to vote for their new party leader and next Prime Minister.
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.