European stock markets registered a light retreat on Wednesday following a mixed trading session in Asia, while U.S contracts also point to a weaker open as the consolidation continues on riskier assets. These bearish corrections, of limited magnitude so far, are mostly perceived as “healthy” by investors following the strongest rally of the year in equity markets. However, some market operators also fear the renewed momentum of coronavirus may impact the pace of the recovery as it is likely to delay investments from businesses and consumers’ demand in some specific sectors, turning the current consolidation into a more sustained decline. Most Eurozone benchmarks are trading lower today with financial and energy shares at the bottom of the table while traders patiently wait for this afternoon’s US crude oil inventories alongside the EIA’s report.
The worst European performance comes from the Spanish IBEX-35 Index after the market opened well below 7,400pts. The price has continued its bearish correction, inside their mid-term bullish channel, following the failure below 7,625pts. Bollinger Bands are narrowing, a sign of a decreasing volatility, while the price is testing its first available support at 7,350pts. A break-out of this zone could extend the current correction towards the lower band, near 7,110pts.
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.