European share markets opened mostly lower on Thursday, following a similar trend overnight in Asia, as investors’ appetite for risk loses momentum. This decreasing interest towards riskier assets came after there were rises in infections in more and more locations, sparking fresh concerns about the economic recovery. Even if the recent reassuring macro data in both Europe and the US combined with unprecedented stimulus plans from central bankers recently brought strong support to the bullish trend, traders now deeply fear the economic consequences a second wave could have globally. Having said that, the threat is already having an impact on stock prices with trend consolidations almost everywhere, so the market will definitely need fresh signs of improvements before registering new highs. On the other hand, most benchmarks are likely to face a strong downside risk, leading prices to sharp corrections if the spread of the virus worsens.
The DAX-30 Index keeps on trading sideways between 12,175pts and 12,445pts following a break-out of its short-term bearish trendline. The market remains well supported by the zone between 12,075pts and 12,175pts as well as the 55-period moving average, which is still rising.
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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