European Shares
Share markets pared earlier gains on Wednesday, extending Asian losses while US futures also point to a lower open.
This bearish sentiment remains mostly driven by profit-taking moves after benchmarks hit key resistance levels, following a two-day rally, while major uncertainties linger. EU stock investors have been disappointed by a higher-than-estimated UK CPI report earlier this morning, which fuelled the current cautious trading stance from traders, ahead of the highly anticipated EU inflation report later today. Elsewhere, investors are likely to cautiously monitor today’s other major developments such as the US Building permits data, the EIA Crude Oil Inventory report as well as corporate results from Tesla Motors Inc, Procter & Gamble Co and IBM. However, with no significant change in the fundamentals and stock indices still capped by major resistances zones, the bearish trend resurgence will remain as the most likely scenario for stocks.
Pierre Veyret– Technical analyst, ActivTrades
Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.
