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Daily market commentary: Investors now expect a Fed pivot towards a less hawkish position

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Daily market commentary: Investors now expect a Fed pivot towards a less hawkish position



European Shares

European shares rose on Friday despite mixed Asian markets as uncertainty rises at week’s end.

Market sentiment towards riskier assets was put under pressure at the end of the US trading session on Thursday after traders witnessed FOMC officials playing down hopes of a pause or pivot from the Fed’s monetary tightening cycle. In addition, rising covid cases in China and high bond market instability, the MSCI Asia Pacific index is now 1.05% lower.

However, things seem to be quite different on the old continent as traders push stock prices higher while assessing Christine Lagarde’s latest speech on interest rate inflation.

Market volatility will remain high as the announcement by an increasingly restrictive ECB and its willingness to do whatever it takes (including negatively impacting growth) could put stock markets at serious risk.

STOXX-50 is trading below its initial resistance level of 3,920.0pts. If prices break out, they could move to 3,965.0pts.

A failure to clear this level could lead to…



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