European markets slid lower on Thursday while safe havens surged as renewed concern about the spread of the coronavirus reversed recent positive market sentiment. A revision to the counting process resulted in 15,000 new cases being reported in the Chinese province of Hubei, the epicentre of the virus outbreak. This significantly increased the total number of infected people and undermined yesterday’s reassuring data in which the spread of the virus appeared to be slowing. This is seen, by investors and short-term traders, as the perfect occasion to reduce their exposure and take some profits after stock markets hit fresh record highs yesterday. However, today’s market correction may also be short-lived as the revised counting process in China, despite adding 15,000 new cases, doesn’t necessarily mean the virus isn’t still spread slower.
Retailers and financials are currently among the worst performers in Europe with equities such as Nestle, Credit Suisse and Barclays driving the Stoxx-600 lower. All European benchmarks are trading in red territory today with the IBEX-35 in Madrid the worst performer. The market opened with a strong bearish gap below 9,900pts this morning and continues to sink towards its bullish trend line with a first available support zone located between 9,840pts and 9,850pts. The 21-period exponential moving average has already reversed and now fulfils a resistance role to the market. In the meantime, investors will keep an eye on today’s US CPI due later today as well as earning reports from giants such as Alibaba and Airbus.
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.