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ESX50

European Stock Indices Decline Amid Political UncertaintyEuropean Stock Indices Decline Amid Political Uncertainty Today, the Eurostoxx 50 index (Europe 50 on FXOpen) has dropped below the early May minimum, reflecting escalating market concerns over the upcoming French elections, as reported by Reuters. Finance Minister Bruno Le Maire's acknowledgment that the current political crisis could evolve into a financial crisis has amplified fears, extending the political risk until June. How long might this decline persist? Fundamentally, statements from authorities could calm the markets. From a technical analysis perspective, the Eurostoxx 50 index chart (Europe 50 on FXOpen) provides clearer insights: → Since February, the price has been in an upward trend (shown in blue), but this trend was broken in late May after bouncing off the lower boundary of the channel. → This breakdown has led to the formation of a downward trend (shown in red). → The lower boundary of the parallel descending channel around 4813 could potentially act as a level where the market finds support after the decline triggered by the political backdrop. However, a false breakout below the April minimum around 4830 cannot be ruled out. Additionally, the price may find support: → Near the 50% Fibonacci retracement level of the bullish impulse A→B around 4760. → Around the psychological level of 4800. On the contrary, resistance may be encountered near the median of the descending channel around 4940 during attempts at recovery. Trade global index CFDs with zero commission and tight spreads. Open your FXOpen account now or learn more about trading index CFDs with FXOpen. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
FXOPEN:ESX50
by FXOpen
1
European Stock Index Shows Signs of WeaknessAs the comparison chart shows, the ESX50 lags behind the US500. And this trend has been observed since mid-December, a period when central banks around the world published interest rate decisions and set expectations for the future. The divergence suggests that Europe's central bankers are in no rush to join the US turn to lower interest rates — even as investors continue to insist that they will have to accept easier monetary policy soon enough. According to Bloomberg, after Federal Reserve Chairman Jerome Powell signalled that the focus is now on lowering borrowing costs, colleagues from Frankfurt to London said that a further slowdown in inflation cannot be taken for granted. That is, for now in Europe, policy easing is not yet on the agenda. “We should absolutely not lower our guard,” European Central Bank President Christine Lagarde told reporters in December, while her Bank of England counterpart Andrew Bailey noted there was “still work to be done” in the fight to rein in consumer prices. The chart shows that overall Western stock markets were positive in December, but a comparative analysis allows us to make interesting observations: the ESX50 index was the top gainer in December; but after a series of central bank meetings in the middle of the month (shown by the arrow), the lead was lost. While the S&P 500 is in close proximity to an all-time high, European stocks have lost bullish momentum. It is possible that the mid-December highs will prove to be important resistance. And if a correction occurs in the stock market (which will be a reason to write about the end of the Santa rally), then the ESX50 will again be a leader, but in a downward trend. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
FXOPEN:ESX50
by FXOpen
1
European Shares Rise on Improving PMI ReadingsYesterday, the values of the PMI index (it is characterized as a leading indicator of industrial production and services) for European countries were published: → in Germany: fact = 42.3; expected = 41.1; a month earlier = 40.7; → in France: fact = 42.6; expected = 43.2; a month earlier = 42.6; Although the index values are below 50, indicating a contraction in the economy, the dynamics are encouraging. Thus, in France, the index stabilized after a series of declines. And in Germany, the index is consistently growing after a minimum of 38.8 in July. In this way, business is reacting to the fact that the ECB may have reached the peak of increases and monetary policy will not tighten in the future. At the same time, the ESX50 index of 50 European shares gained bullish momentum and reached its highest levels since mid-August. Equity market participants may be feeling strongly positive about the rally of more than +9% in less than a month. However, the daily chart of the ESX50 shows that price dynamics allow a structure of trend lines (shown in blue) to be drawn, reminiscent of a Gann fan. And what's interesting is that the current value has reached an important line (shown as thickening) in this structure, which can serve as resistance - as it did more than once during the period from April to July. Given that the RSI indicator is forming divergence in the overbought zone, it can be assumed that the market is vulnerable to a pullback. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
FXOPEN:ESX50
by FXOpen
1
Morgan Stanley Analysts Raise Forecasts for S&P 500According to them: → the price of the S&P 500 index will reach 4,500 at the end of the year (previous forecast = 4,200); → the dollar will continue to remain strong. According to Goldman Sachs analysts, published yesterday, the price of the S&P 500 index will fluctuate around current levels, forming a consolidation zone. That is, a decline in the S&P 500 is not a priority scenario. An important test that will provide more important information about current market sentiment will occur today: US inflation data will be published at 16:30 GMT+3. According to forecasts, it will slow down from 3.7% to 3.3%. In anticipation of news, E-mini S&P 500 index futures are showing reduced volatility. If inflation data gives rise to bullish momentum, it is possible that the price of the S&P 500 will move up, pushing off from the median line of the ascending channel (shown in blue). Then, justifying the forecasts of MS analysts, the price may reach the upper limit of the channel this month. Also worth paying attention to: → increasing local minima A, B, C show signs of demand strength; → RSI indicates non-divergence, increasing the likelihood of a movement to the lower border of the channel. This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
FXOPEN:ESX50
by FXOpen