Europe Is Less Than 1% Away From Breaking Resistance

On Tuesday, after the Wall Street holiday for Labor Day , the European market is expected to correct after Monday’s gains on the day the Zew survey data on investor confidence and current sentiment will be released.

In addition, the GDP data for the second quarter of the year will be known, both year-on-year and quarter- on- quarter , where a 2% rebound is expected. On the other side of the Atlantic, futures anticipate a green day after taking a break, so a new all-time high could once again be celebrated on Wall Street .

From a technical point of view, “the resistances of the EuroStoxx 50 located at 4,275 and 4,360 points are those that should be overcome in a forceful way so that we can trust a context of sustainable upward continuity and without any rest towards objectives that we have been managing for months. at 4,575 points, which are the highs for 2007 “, explains Joan Cabrero, Ecotrader advisor. This first level is only a 0.7% rise since the close of Monday .

“From Ecotrader we continue in our thirteen that before seeing greater increases towards that objective that we managed of 4,575 points it is likely that we will attend a corrective process similar to the one we saw from the highs that marked the EuroStoxx 50 in mid-June, which led to the main European reference of 4,166 to 3,900 points, “adds Cabrero. “This could take the EuroStoxx 50 to the area of ​​3,985 / 4,000 points, which is the optimal buying zone,” he concludes.

Falcons at the ECB
In recent days, purchases had been imposed on the European sovereign bond market, as a way of expressing that the hawkish message of some of the members of the ECB was not being bought in the week prior to the interest rate meeting that will take place this Thursday and in which the first clues could be given about the start of the withdrawal of stimuli .

The fixed income futures of this Tuesday point to the opposite, since a fall in these prices is expected, which indicates sales of the sovereign bonds of the main continental references , therefore, as also indicates the market consensus of Bloomberg , this Thursday those of Christine Lagarde could announce the reduction of the rate of purchases that currently stands at 80,000 million euros per month.

China pulls oil
Despite the fact that on Monday’s session, crude oil fell due to the announcement by Saudi Arabia (Aramco) to lower its sales prices to better adapt to the new environment of higher production that will start from October, today this raw material It is trading again with increases, thanks, above all, to China.

The Asian country has published its import and export data for the month of August, clearly exceeding market forecasts . In fact, imports have reached a peak in the last five months . In addition, it somewhat alleviates fears around a slowdown in Chinese activity. Thus, a barrel of Brent has started the day with rises close to half a percentage point, which leaves it at around $ 72.5 per barrel.

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