European shares traded significantly higher on Thursday, continuing the bullish trend from Asian stocks and extending yesterday’s gains amid a renewed appetite for risk. Yesterday’s news about Pfizer and BioNTech’s successful vaccine trial turned market sentiment upside down as it came while investors were preparing to redirect their exposure from risk assets to safe havens as a result of the recent jumps in new virus cases in many hotspots. This positive development in the battle against the virus finally provides investors with more clarity and is likely to result in a much clearer direction in market movements in the near future. Even if the mood is now clearly bullish on stocks, today’s trading session could still be volatile as traders brace for the highly anticipated US jobs report for June due later today, ahead of tomorrow’s bank holiday.
Today’s best performance comes from Spain where the IBEX-35 Index is trading near resistance at 7,410pts. The sharp upward move followed a bullish break-out that validated a triangle pattern and has opened the path not only to 7,410pts but also to 7,520pts and 7,635pts by extension. The 21-period moving average is now rising and the Stochastic indicator is in its overbought zone, indicating an acceleration of the trend.
Pierre Veyret– Technical analyst, ActivTrades
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