European stocks fell alongside Asian markets on Thursday over increasing concern on the impact the coronavirus will have on the world’s second-largest economy. As the deadly virus continues to spread and the death toll keeps on increasing, the situation is now starting to have a significant impact on analysts’ and economists’ growth forecasts for China, providing unwelcome sentiment for stock traders. Investors who were hoping for a more dovish Fed yesterday evening have been disappointed as Jerome Powell held rates at their current level and said the mid to long-term impact of the coronavirus on the US economy was still hard to gauge, adding that a direct response from the Fed was still inappropriate. Market sentiment has also been negatively impacted by mixed results brought by tech giants such as Facebook, Microsoft and Tesla yesterday while Unilever and International Paper report today.
Elsewhere investors will keep an eye on today’s BoE meeting, the last one before the UK formally exits the EU. This meeting is likely to increase volatility towards GBP assets as the outcome, with a 50% chance of a 0.5 basis point cut, remains very uncertain to investors. While the impact of this anticipated meeting has already had a negative impact on Sterling this week, it could give a solid mechanical boost to UK shares. So far, the FTSE-100 Index is flirting with the 7,450pts level after rebounding over the 7,410pts zone. However, the market will have to clear the resistance zone at 7,475pts–7,510pts in order to reach previous highs towards 7,700pts and beyond.
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.