European equities initially ticked higher after yesterday’s sell-off. However, this initially bullish move was short-lived as most markets dipped shortly after the opening bell, leading prices close to yesterday’s lows. Investors remain stuck between their appetite for risk and the blurry impact of coronavirus which is leading to mixed market sentiment this week. President Trump tried to reassure investors by saying the US economy was still sound, robust and not yet impacted by the deadly virus. These words were also underlined by NEC Director Kudlow who even said investors should “seriously considering buying the dip”. However, these words were not enough for most investors who are already fearing, if not a direct, at least an indirect impact on US imports/exports in the coming days or weeks.
In addition, traders are paying more and more attention to warnings from large international groups, especially after MasterCard and American Airlines both said their profit were getting hurt by the crisis.
European markets are mixed so far as the volatility remains high, but the directionality is still missing. The FTSE-MIB keeps on registering the eurozone’s worst performance while the French CAC-40 Index as well as the DAX-30 Index from Frankfurt are trading close to today’s opening prices. The most resilient index can be found in London as the FTSE-100 is trading slightly higher than yesterday. Investors’ sentiment towards UK shares may be boosted by the prospect of a UK-US trade deal after UK PM Johnson recently said trade talks with Washington could begin as early as the beginning of March. The market failed to clear the strong zone at 7200pts and is now trading around the 7150pts level, which is the first support before 7115pts. A clearing of the 7200pts zone could quickly lead prices close to 7255pts and 7300pts by extension.
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.