The first session of the month of November points to slight increases in the Old Continentjust as the futures come before the opening. This small rebound does not make up for the sharp drop in recent days, which maintains a weekly balance with drops that exceed 2%. In fact, the EuroStoxx 50 closed October as the most bearish month of the year.
From a technical point of view, the fall of these days has caused the loss of the first support that the EuroStoxx 50 found at 4,900/4,870 points. “His transfer opens the door to a broader consolidation phase, which does not surprise me since it fits with what I thought could happen weeks ago, which would be more similar and proportional to the last consolidation phase prior to the August fall “explains Joan Cabrero, Ecotrader advisor.
“The good news is that if this broader consolidation finally forms, it could take the EuroStoxx 50 to the September minimum area of 4,730 points and in the worst case the 4,675/4,700 points“, he continues. “A fall to these supports would be seen as an opportunity to buy the European stock market again,” he continues. “As long as the EuroStoxx 50 does not lose the September lows of 4,730 points and, above all, 4,675/4,700 points “I am not in favor of reducing exposure to the Old Continent stock market,” concludes Cabrero.
Next week the US presidential elections are held, probably the most relevant political event for the markets every four years. The market is waiting for what will happen this Tuesday, two days before the Fed meets to decide on interest rates, where a new cut of 25 points is expected basics.
Fixed income futures they aim for a shopping day in the main references after several weeks of decline where expectations of a less aggressive monetary policy have weighed on the pace of declines given clues that suggest that inflation is not completely controlled.
LinkedinBeloud
#Europe #seeks #support #buy #zone #points #EuroStoxx
