Europe saw stocks rise on Wednesday, with Asian benchmarks continuing to register gains overnight. This is a sign that bullish sentiment continues ahead of key macrodata.
After the opening bell, the market was led by consumer cyclicals as well as real estate and energy shares. Utilities and industrials suffered small losses on the old continent. Market sentiment is generally resilient.
Investors are encouraged to take on more risk by the prospect of a better economic outlook in Europe and the US, as well as the opening of the Chinese economy. The lack of clear hints from Fed Chairman Jerome Powell yesterday also contributed to keeping the bullish trading stance alive, and most traders will now look towards tomorrow’s US inflation print for further clues.
The DAX-40 index still trades above the 14,800.0pts level following a technical pull-back on its last top after yesterday’s bullish trading session. The next short to medium-term target is at 15,115.0pts (50% Fibonacci extension). Breaking the 14,800.0pts support will invalidate the current bullish tendency and could push prices back towards 14,670.0pts.