European shares traded significantly higher on Tuesday, with similar gains on both Asian stocks and US futures on the S&P 500. This bullish trading stance took hold during yesterday’s US session when both the Fed and Washington tried to reassure investors against rising virus numbers. While the Fed will start buying corporate bonds on Tuesday, Washington unveiled a $1 trillion infrastructure spending plan, aiming to provide further support to the economy, which gave an immediate boost to market sentiment. Risk appetite is currently mostly driven by two powerful but opposite levers: the fear of a second virus wave and the batch of fiscal and monetary measures put in place by governments to sustain growth. Due to this, there is a high chance that macro data, like today’s US Retail Sales, will be overshadowed by these two drivers on the short-term basis as traders have one question in mind: will the stimulus measures be enough to offset the impact of a potential second wave to our economies?
Technically, the DAX-30 Index failed to clear its double resistance near 12,320pts and now is heading back to its opening price. However, the market remains well supported by the zone at 12,150pts even if a pull-back towards 12,075pts remains possible today. A climb above 12,320pts could take the market higher towards 12,500pts and 12,735pts 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.