Stocks opened significantly higher in Europe on Wednesday after bull traders already set the pace in Asia overnight. Despite a Coronavirus death toll now over 2,000, market sentiment has been revived on rumours of new measures by China to sustain parts of its economy. China is likely to reduce the negative impact on some of the most exposed companies like airlines, after 80% of domestic flights were halted.
However, today’s risk appetite is also being impacted by rising civil tensions in Libya after Tripoli port was bombarded yesterday by forces loyal to Khalifa Haftar. The situation is already significantly impacting oil markets, sending prices higher as fears over supply arise from the conflict. Unsurprisingly, energy shares are performing strongly on the Stoxx-600 index this morning alongside miners to send the market higher, while traders are already braced for a busy day as the British CPI, US Building Permits, US PPI and FOMC minutes loom.
Photo by Clyde Thomas.
The best performance is being registered by the FTSE-100 index where prices benefit from the decline on the Pound Sterling after the EU toughened its negotiation tone with the UK. The market is breaking-out of its 55-period moving average and is currently headed back to 7,485 pts, its first resistance level to be cleared before unlocking a new bullish potential to 7,555 pts.
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.