After Thursday’s opening bell, European markets are poised for another bullish session. These gains extend the trend that was spotted in Asia overnight and on US futures.
This week’s bullish sentiment lingers after yesterday’s reassuring US consumer confidence data and the recent declaration from Chinese regulators, pledging more support to the real estate sector and the overall Chinese economy in general, provided a fresh boost to market optimism towards equities.
As key US GDP data and employment data are released in the afternoon, this sentiment could change. A slight increase from 211K to 222K is widely estimated regarding jobless claims while traders don’t expect any significant change regarding the US GDP (2.9%). However, any number that is outside these windows could severely impact risk appetite, especially since we are entering the last significant trading sessions.
STOXX-50 has cleared its first short-term resistance of 3,860 points. This zone acts now as a support area for the market and prices continue to climb towards the next resistance at 3,888pts/ 3,900pts. This zone is significant from a technical standpoint (overlapped of the previous market low +50 ).