Risk assets ticked slightly higher at the market open on Tuesday, despite thinner volumes, as market sentiment remains sustained by hopes of further stimulus in the US.
Most equity traders around the world welcomed the US Democrat victory for the control of the US Senate this morning as it sparked hope that this new “blue wave” could bring further regulation, tax hikes and, more importantly, further fiscal aid. These hopes are having a strong impact on market sentiment and specifically on cyclical assets as more and more investors, already in the future, are pricing in the economic recovery and the return of inflation. This renewed appetite towards these sectors may even offset the potential dip for tech shares this year after such a strong rally in 2020. Some investors, worried about valuation issues and possible bubbles in the tech markets may choose to use this sector as a “defensive” move this year while cyclical, energy and more generally industrial shares could be the top performers if economies successfully shake off the negative effects of Covid-19.
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.