European stocks are trading significantly as investors welcome the deal reached by EU leaders on the new €750 billion virus relief package. While this news is the main driver, markets are also being supported by the latest positive developments in the search for a vaccine. Most investors will now switch their focus to Washington where another stimulus plan is said to be under discussion.
However, some investors see these new market highs as a state of euphoria with the current bullish momentum excessive and taking prices further away from their equilibrium levels. This would leave the market prone to a sharp correction in the future. Having said that, there aren’t many traders willing to risk standing in front of such a fast-moving train so far.
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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