Share markets edged higher on Tuesday despite an Asian session closing on a mixed tone overnight. While lockdowns and increasing infection, numbers continue to weigh on market sentiment, investors’ risk appetite is sustained by stimulus prospects, especially in Europe where a €750bn package is being studied. This market “status quo” is likely to stay in place until the current massive vaccination process has brought the infection rate down. Meanwhile investors are likely to keep their focus on macro data and corporate results with today’s Q4 earnings from Netflix, Bank of America, and Goldman Sachs in sight.
The Stoxx-50 Index successfully rebounded over the lower band of its flag and now flirts with 3,600pts. A break-out of this level would open the door to a fall to 3,575pts while a clearing of the zone at 3,625pts would open up the possibility of an extended rally to around 3,645-3,650pts.
