Stocks fluctuated in Europe at the start of the last trading session of the week, as lingering macro uncertainties keep investors in a “wait and see”, stance.
Investors are being torn between the major bearish market drivers of higher rates and economic slowdown on one hand, and the temptation to buy shares at a much-discounted price compared to last year, on the other. This has created a situation where everyone would like to buy the market bottom, but no one knows where and when it will be registered.
Uncertainty continues to weigh on market sentiment in the very short-term too, as traders digest the latest mixed signal from Beijing after the Chinese party congress pointed to easing covid restrictions but also rising economic tensions with the US.
Elsewhere, investors have been taken by surprise after newly elected UK PM Liz Truss resigned yesterday after only 45 days in office. This resignation highlights the lingering problems the UK has had over the past few years with its political sphere, which adds pressure to a market sentiment already weighed down by strong economic and monetary challenges. Investors are likely to maintain their focus towards the race to the next PM and a possible new General Election.
The FTSE-100 follows the European trend by trading sideways with lower volatility levels than usual so far. The market remains capped by the 6,945.0pts level while supports can be found over 6,815.0pts, 6,775.0pts and 6,700.0pts by extension.
Experienced writer and journalist, working in the global online trading sector, Steffy is the Editor of LeapRate. She has previous experience as a copywriter and has been with the company since January 2020. Steffy has a British and American Studies degree from St. Kliment Ochridski University in Sofia.
