Stock indices opened on a mixed tone on Monday in Europe
31.10.2022
EUROPEAN SHARES
Stock indices opened on a mixed tone on Monday in Europe, following the trend spotted in Asian shares overnight, as traders digested poor key data from China while bracing for a crucial week on the macro front.
Investors have been disappointed by today’s Chinese PMI data falling short, below expectations. The PMI came in at 49.2 for October versus an expected 50, and this has revived fears of both slower growth and oil demand, and is limiting risk appetite ahead of a busy week.
With many traders waiting for confirmation the rumours they have bought over the past few days will turn out to be true, impending CPI/GDP EU data alongside policy decisions from the Federal Reserve, RBA, BoE as well as the US NFP on Friday, will make this week a moment of truth for investors.
Market volatility is likely to remain high until Friday, as investors have a lot to digest, with a peak expected towards Fed Chairman Jerome Powell’s speech following the FOMC policy decision, as many traders expect a slightly less hawkish tone from the central banker.
Technically speaking, the STOXX-50 still trades above its immediate support at 3,600 pts, inside a rising wedge which highlights the fact the bullish trend is slowing more and more.
Pierre Veyret– Technical analyst, ActivTrades
Source: ActivTrader
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