European shares continue to trade higher on Wednesday, alongside Asian equities and US Futures, as vaccine hopes keep on fuelling the market’s current bullish sentiment. Moderna’s promising results from its vaccine trial have helped sustain market sentiment today, and this optimism even offset new cases of the virus spotted around the world.
However, the bullish potential may be limited on stocks in the near future as US-Sino tensions continue to escalate with President Trump ending Hong Kong’s special status, specifying the region will now be treated the same as the rest of mainland China.
This growing bearish leverage is expected to have an inevitable economic impact on both superpowers as it will halt US investments to China and limit the access of Hong Kong companies to US funding and transactions. While optimism remains for now, this resurging bearish leverage is expected to become increasingly important for traders in the coming weeks and is likely to put pressure on riskier assets.
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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