ActivTrades’ Market Analysts have provided their daily commentary on traditional markets for April 29, 2019.
Forex
The Euro is finding support and recovering some ground against the US Dollar, reaching $1.1166, following the victory of the centre left party led by current prime minister Pedro Sanchez in yesterday’s Spanish election. In a contest that saw the support for newly formed far-right Vox falling short of predictions, the results provided encouragement for single currency bulls.
On the run-up to the upcoming European Parliament election, this is good news for the European project and for the Euro. Vox campaigned on an anti-Eu agenda and its below expectations results may signal a loss of support for Euro-sceptic populist movements.
Ricardo Evangelista – Senior Analyst, ActivTrades
European Shares
European stocks had a mixed open this morning, following a weak session in Asia with lower trading volumes than usual as Tokyo remains shut for holidays. Investors are now trying to analyse whether the recent global economic optimism rebound will linger or not. This, ahead of a very busy week with significant data coming from the China, Europe but also the U.S. with the highly anticipated jobless report to be published on Friday.
There is a good chance that today’s rhythm will be set by the U.S. inflation report (1:30PM GMT): softer data could prompt the Federal Reserve to proceed with interest rates cuts earlier than previously anticipated. European benchmarks had little gains registered since the opening bell.
The worst performance comes, unsurprisingly, from the IBEX35 index in Madrid where some investors are concerned about the outcome of the last general election. Pedro Sanchez will now have to enter talks with Podemos to build up an alliance as the PSOE party won with no clear majority.
Pierre Veyret– Technical analyst, ActivTrades