EUROSTOXX 50 returns to the mean
European market stocks rose at the open driven by easing concerns about regional political turmoil in a week that is set to see several central bank meetings, including the Bank of England (BoE). It appears that the call for elections in France makes it easier to believe that Macron's center-left group will have a tough time against the Rassemblement Nationale in the upcoming elections. The outcome of the European Elections on the other hand, has meant that market sentiment towards a conservative and protective drift with the European People's Party in charge of that drift have forced markets to believe that someone is worrying about the political-ideological continuity that Lagarde's Europe currently has. The CAC-40 collapsed last week -6%, one of its worst weekly losses since March 2022. Basically, it is a steep pullback.
The ECB meetings force us to keep an eye on last month's consumer price index, and the figure of 2.6% y/y is expected to be confirmed, up from 2.4% the previous month. Despite the interest rate cut of 25 basis points at the beginning of June, a clear timetable of reductions is not very clear. The central banks of Norway, the United Kingdom and Switzerland are also meeting and the Swiss National Bank, in particular, is expected to apply 25 basis points, as opposed to the previous two, which are expected to keep their rates unchanged. However, as the British bank has a voting system, it is not clear what policy it will take either since last month 7 members voted to maintain and 2 to cut.
It remains to be seen what Piero Cipollone, member of the executive committee at the ECB and the World Bank, will tell us today about the progress of the financial unification of the eurozone and the economic horizon and the green transition and the role of the central bank in this transition. Already in May he was able to give us an insight into his melodramatic ideology about the alleged "Tragedy" looming over Europe in this respect and the opportunities that are not being taken in this respect. We will have to see in which direction he communicates this time.
If we look at the daily chart of the EUROSTOXX 50 (Ticker AT: EURO50), we can see how it has been moving sideways in a long term uptrend. Being that since last week the main stocks of the index have cut their price forcing it to break out of this channel. If we look at the movement initiated yesterday back to the average of this sideways movement, it has remained at the gates in expectation of this week's news and economic results of the stocks that compose it. At the moment, if we look at the RSI, the index is oversold at 41.71%. The shape of the price bell is very much centered on prices around 5028 points, with a low of 4573.06 points and a high of 5130.41 points. It would not be strange to see a recovery to the middle zone and a new attempt to find the highs during this month.
Ion Jauregui - ActivTrades Analyst
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The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
The ECB meetings force us to keep an eye on last month's consumer price index, and the figure of 2.6% y/y is expected to be confirmed, up from 2.4% the previous month. Despite the interest rate cut of 25 basis points at the beginning of June, a clear timetable of reductions is not very clear. The central banks of Norway, the United Kingdom and Switzerland are also meeting and the Swiss National Bank, in particular, is expected to apply 25 basis points, as opposed to the previous two, which are expected to keep their rates unchanged. However, as the British bank has a voting system, it is not clear what policy it will take either since last month 7 members voted to maintain and 2 to cut.
It remains to be seen what Piero Cipollone, member of the executive committee at the ECB and the World Bank, will tell us today about the progress of the financial unification of the eurozone and the economic horizon and the green transition and the role of the central bank in this transition. Already in May he was able to give us an insight into his melodramatic ideology about the alleged "Tragedy" looming over Europe in this respect and the opportunities that are not being taken in this respect. We will have to see in which direction he communicates this time.
If we look at the daily chart of the EUROSTOXX 50 (Ticker AT: EURO50), we can see how it has been moving sideways in a long term uptrend. Being that since last week the main stocks of the index have cut their price forcing it to break out of this channel. If we look at the movement initiated yesterday back to the average of this sideways movement, it has remained at the gates in expectation of this week's news and economic results of the stocks that compose it. At the moment, if we look at the RSI, the index is oversold at 41.71%. The shape of the price bell is very much centered on prices around 5028 points, with a low of 4573.06 points and a high of 5130.41 points. It would not be strange to see a recovery to the middle zone and a new attempt to find the highs during this month.
Ion Jauregui - ActivTrades Analyst
*******************************************************************************************
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and such should be considered a marketing communication.
All information has been prepared by ActivTrades ("AT"). The information does not contain a record of AT's prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acing on the information provided does so at their own risk.
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