Stock markets in Europe lacked a clear direction on Tuesday following a similar trend on Asian benchmarks. The risk appetite is still alive this week, but investors remain torn between reassuring data on the virus front and poor earnings results. Lower infection rates almost everywhere seem to suggest the market bottom may now be behind us. However, despite the looming reopening of economies, traders prefer to contain their enthusiasm and wait for a cure, vaccine or proof the virus has been fully contained in order to avoid a second wave of cases, which would be dramatic for people as well as for economies.
In Europe, most investors and bankers will wait for the EU Commission’s details around new capital-relief measures to help the banking industry sustain businesses in the struggle against the pandemic. Unsurprisingly then, financial shares are among the top movers in Europe today with companies like Allianz, BNP, Société Générale and BBVA helping the Stoxx-600 edge slightly higher.
Photo by Rio Lecatompessy.
The Italian FTSE-MIB Index is still the eurozone’s best performer and is now trading above 17,550pts. Technically speaking, the price will have to clear 17,835pts in order to unlock a potential cross of the bearish Ichimoku cloud and rise up towards 19,640pts. The Chiko-span has cleared both the price barrier and the Tenkan-Sen, which are the first steps of a trend reversal, but the cloud thickness may prevent the market from going higher, at least temporarily.
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.