EUROPEAN SHARES
European benchmarks stabilised on Wednesday despite volatility spikes from individual stocks as investors switched their focus to corporate earnings.
While most traders and analysts await further geopolitical developments, all eyes remain on this week's batch of macro data and companies' Q1 results.
Risk appetite remains on the back foot after Fed Chairman Jerome Powell's recent hawkish comments, and investors are now looking for reasons to buy or hold their exposure to stocks through corporate results.
However, traders have faced an uneven set of results so far. Disappointing earnings from the tech sector, with ASML in focus, were offset by reassuring reports from LVMH and Adidas yesterday.
The corporate agenda remains quiet for today, ahead of tomorrow's reports from Danone, Essilor Luxottica, Netflix, and Taiwan Semiconductor Manufacturing. Investors' focus is likely to be on macro data as the EU CPI report looms alongside speeches from ECB officials.
Most EU benchmarks trade close to immediate support levels. The DAX-40 index is currently just above a crucial area around 17,850pts, where a bearish break-out could put the mid-term bullish trend at risk.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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