Stocks slid lower in Europe
EUROPEAN SHARES
Stocks slid lower in Europe at the opening of the last trading session of the week, as lingering worries about the financial sector keeps pressuring market sentiment.
Despite US treasury secretary Janet Yellen’s reassuring speech yesterday, most investors remain cautious towards riskier assets and prefer to seek for safety while waiting for further development. Today’s bearish price action has also been brought by a batch of poor PMI data from France and Germany and disappointing GDP figures from Spain, that have sent benchmarks towards their first support levels.
However, even if global uncertainty remains, the fact major central banks have pledged to provide support to economies through an increase in liquidity to the financial sector, is likely to lift market sentiment on the short to mid-term basis. We see the current price action as a potential pull-back on newly registered support zones, before reaching new highs. The Stoxx-50 trades close to a major support at 4,150.0pts, weighed down by financial and energy shares, while both the RSI and moving averages remain bullish so far.
Pierre Veyret– Technical analyst, ActivTrades
Stocks slid lower in Europe at the opening of the last trading session of the week, as lingering worries about the financial sector keeps pressuring market sentiment.
Despite US treasury secretary Janet Yellen’s reassuring speech yesterday, most investors remain cautious towards riskier assets and prefer to seek for safety while waiting for further development. Today’s bearish price action has also been brought by a batch of poor PMI data from France and Germany and disappointing GDP figures from Spain, that have sent benchmarks towards their first support levels.
However, even if global uncertainty remains, the fact major central banks have pledged to provide support to economies through an increase in liquidity to the financial sector, is likely to lift market sentiment on the short to mid-term basis. We see the current price action as a potential pull-back on newly registered support zones, before reaching new highs. The Stoxx-50 trades close to a major support at 4,150.0pts, weighed down by financial and energy shares, while both the RSI and moving averages remain bullish so far.
Pierre Veyret– Technical analyst, ActivTrades
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