ActivTrades’ Market Analysts have prepared for LeapRate their daily commentary on traditional markets for October 28, 2019. See details below:
EUROPEAN SHARES
Stocks traded significantly higher almost everywhere in Europe this morning on renewed optimism over the weekend. China echoed US sources on progress registered towards ending the trade dispute by confirming discussions regarding a “phase one” deal were basically completed on both sides. Investors welcomed the news this morning, betting for a potential final deal to be reached in November. In addition, investors are also eyeing this week’s Fed meeting where Jerome Powell is expected to announce one last rate cut this year on the grounds of lingering concerns of slower global growth and uncertainty. This double bullish leverage on stock markets will certainly have a positive impact on prices this week and may make a year-end rally possible. The only European Index trading lower is the FTSE-100 in London where prices remain under pressure following the Pound Sterling surge after France agreed another Brexit extension. In the meantime, the earning season continues with US giants like Alphabet and AT&T reporting results today.
DAX-30
Prices are trading higher in Frankfurt this morning with the DAX-30 index evolving above the 12,900 pts zone as the market heads for a sixth straight gaining session. Even if the benchmark remains under the influence of external bullish leverages such as the US/China trade war and central bank monetary policy, prices are also getting carried higher by domestic stocks like Covestro AG which reported a Q3 EBITDA slightly ahead of market expectations. The share’s performance has also been boosted following a recent change in ratings from Commerzbank which changed from “Hold” to “Buy” over the weekend. However, the best performance is seen in the automotive and components sector, with Continental AG, currently trading well above 125 EUR. The DAX-30 index failed to clear the 12,950 pts level this morning before slipping back to the 12,900 zone; However, bull traders seem to be in place to defend the important support over the 12,885 pts level, which could bounce prices back to the 12,946 pts resistance today.
Pierre Veyret– Technical analyst, ActivTrades
DAX-30 index chart