Shares opened mostly higher in Europe following strong bullish momentum from the Asian trading session on Tuesday. Yesterday’s reassuring manufacturing PMIs in Europe followed by positive data in the US combined with lower virus cases in some states, have lifted global market sentiment higher. In addition, the current risk appetite is also sustained by fresh hopes of further stimulus in the US as President Trump is said to be considering extending unemployment benefit.
Even if carmakers and the banking sector are among the best performers in Europe today, investors remain very attracted to tech shares following positive earnings reports last week.
This sector could be qualified as a “safe haven” for stocks as it has been one of the least impacted by the Covid-19 pandemic as tech companies and the services they offer remain well adapted to a work-from-home economy. However, despite the current very short-term bullish mood, most benchmarks will have to clear significant technical resistances before putting an end to the consolidation, re-start their bullish rally and register new highs.
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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