European markets will see another bullish session of trading after Thursday’s gains. This extends the trend seen in Asia overnight, as well as on US futures.
This week’s bullish sentiment lingers after yesterday’s reassuring US consumer confidence data and the recent declaration from Chinese regulators, pledging more support to the real estate sector and the overall Chinese economy in general, provided a fresh boost to market optimism towards equities.
Today’s key US GDP and US employment data will be crucial. This may change. A slight increase from 211K to 222K is widely estimated regarding jobless claims while traders don’t expect any significant change regarding the US GDP (2.9%). Any number beyond these windows could adversely affect risk appetite, particularly as we approach the end of significant trading sessions for the year.
STOXX-50’s index has passed its first short term resistance at 3,860pts. It acts as a support zone and prices continue to climb towards their next resistance at 3,888pts / 3.900pts. This zone is significant from a technical standpoint (overlapped of the previous market low +50