Benchmarks from London to Milan were in the green on ThursdayEUROPEAN SHARES
Share markets continued to edge higher in Europe, extending gains registered yesterday evening on Wall Street, as investor appetite for risk is on the rise before the end of the quarter.
Benchmarks from London to Milan were in the green on Thursday, led higher by all sectors, but with the best performances being brought by real estate stocks so far.
Market sentiment remains relatively positive, and investor confidence remains high despite the recent turmoil brought by the financial sector, as appetite for risk gets supported by the prospect of dovish pivots from central banks, providing a good excuse to push stock indices higher just before the end of the quarter. However, the current rally is being built more on expectations rather than facts and proper actions, which means benchmarks could be under the threat of a sharp drop if central banks (especially the Fed) were to disappoint investors.
More market volatility is likely to be on its way today as traders wait for the new German CPI print, the Eurozone Economic Confidence, US GDP and jobless claims while speeches from Fed officials also loom later in the afternoon.
The STOXX-50 now trades well above 4250.0pts at 4280.0pts and seems to be on its way for a 100% retracement of the short-term bear trend started at the beginning of the month.
Pierre Veyret– Technical analyst, ActivTrades
