European shares continued to climb, alongside US futures
EUROPEAN SHARES
European shares continued to climb, alongside US futures, as risk appetite grew at the start of the final trading session of the week. Investors continue to respond positively to the optimistic discussions surrounding the debt-ceiling issue in Washington, which have bolstered market sentiment towards equities, despite lingering uncertainties brought by recent macro data.
Indeed, sticky inflation, slowing recovery momentum in China, monetary tightening, and weaknesses in US employment data and the banking sector can still be seen as lingering dark clouds for investors who could be tempted to seek hedging solutions once the debt ceiling issue is temporarily solved.
Meanwhile, all sectors are on the rise in Europe, with the best performances being brought by basic materials and energy shares. The STOXX-50 is trading around its first major resistance at 4,385.0pts following a bullish clearing of its bearish short-term trendline.
The next target is the all-time high at 4,420.0pts, while a failure below 4,385.0pts could drive the market in a pull-back move around 4,375.0pts, 4,352.0pts, and 4,330.0pts by extension.
Pierre Veyret– Technical analyst, ActivTrades
European shares continued to climb, alongside US futures, as risk appetite grew at the start of the final trading session of the week. Investors continue to respond positively to the optimistic discussions surrounding the debt-ceiling issue in Washington, which have bolstered market sentiment towards equities, despite lingering uncertainties brought by recent macro data.
Indeed, sticky inflation, slowing recovery momentum in China, monetary tightening, and weaknesses in US employment data and the banking sector can still be seen as lingering dark clouds for investors who could be tempted to seek hedging solutions once the debt ceiling issue is temporarily solved.
Meanwhile, all sectors are on the rise in Europe, with the best performances being brought by basic materials and energy shares. The STOXX-50 is trading around its first major resistance at 4,385.0pts following a bullish clearing of its bearish short-term trendline.
The next target is the all-time high at 4,420.0pts, while a failure below 4,385.0pts could drive the market in a pull-back move around 4,375.0pts, 4,352.0pts, and 4,330.0pts by extension.
Pierre Veyret– Technical analyst, ActivTrades