European markets were little changed at the open today, following a mixed trading session in Asia. Stocks are lacking direction as volumes are thinner than usual due to US ‘Independence Day’ holiday and ahead of tomorrow’s key job report from the US.
A bit of volatility has been observed on the currency markets after President Trump accused China and Europe of manipulating their currencies to compete with the US which made the Euro edge higher without any other significant impact on European shares.
More recently, the Trump administration confirmed the next round of talks with China will take place soon as Washington is currently setting a call with Beijing next week. NEC Director Larry Kudlow adopted an optimistic tone towards these talks but also warned investors that no tariff will be lifted during the discussion. He also added China needed to comply with its commitments to make big purchase of US goods in order to unlock the situation and make a trade deal possible.
Today’s technical market picture shows us investors are waiting for new developments; their trading decisions for July currently depends on 3 major topics: the outcome of the U.S.-China trade talks, US (and global) economic data as well as the next move by central banks. While the Stoxx-50 index is flat, the best performer so far today is the FTSE-MIB in Milan and the worst one is the IBEX-35 in Madrid, with mild price action. In Geneva, half of the listed stocks is trading mildly higher this morning, except for Lafarge Holcim LTD which is one of this morning’s biggest European market movers as its shares are extending yesterday’s gains.
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.