Home Stocks Share markets opened the week on a significantly positive tone LeapRate

Share markets opened the week on a significantly positive tone LeapRate

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European Shares

Share markets opened the week on a significantly positive tone, from Tokyo to London alongside US Futures, as market sentiment strengthened over the weekend. Investors welcomed the move from China after Beijing decided to ease some of its virus restrictions while opening the door to more economic stimulus. This is crucial news as re-opening in the world’s second-largest economy will surely lift some the lingering global economic concerns and increase the likelihood of a rally in the commodity sector. That said, some traders have already started to buy dips on equity markets, attracted by cheaper prices alongside still solid corporate results, which leads most benchmarks over key resistances this morning.

Daily Market Commentary

However, this situation may be short-lived for EU stocks as investors have been disappointed by today’s Spanish surging CPI print (8.5%), which dents expectation of a peak in European inflation. The ECB is now increasingly under pressure to act against rising prices in the region, and investors are likely to pay close attention to Christine Lagarde’s next move against it,  and markets are expected to remain volatile until then.

Pierre Veyret– Technical analyst, ActivTrades


Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

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