EUROPEAN SHARES
Share markets opened mixed at the beginning of the new week in Europe, following a bearish trading session in Asia, as dark clouds continue to dent market sentiment.
Risk appetite keeps decreasing as investors digest the recent hawkish hints from central banks suggesting more rate hikes before year-end are still on the table while borrowing costs should stay higher for longer.
Most investors perceive this as negative news and are increasingly losing confidence in central banks’ ability to undermine the pressure brought by rising global inflation.
Talking about inflation, traders are already bracing for this week’s monthly CPI reports from many nations, such as Japan and Eurozone countries. Furthermore, investors will also pay close attention to speeches from many Fed and ECB officials, alongside key data from the US and China this week.
Meanwhile, market sentiment remains under pressure towards riskier assets, and this trend is likely to continue further this week unless investors witness a significant shift in the current market drivers set by the latest batch of disappointing macro developments.
The STOXX-50 is trading sideways between 4,210.0pts and 4,180.0pts, as rising prices in the healthcare sector offset poor performances from consumer cyclical shares. However, a break-out of the 4,180.0pts support could quickly lead prices further down towards 4,145.0pts, the last support before the 4,000.0pts / 4,060.0pts zone.
Pierre Veyret– Technical analyst, ActivTrades
Source: ActivTrader
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