The European futures index market anticipates a session with falls in the stock market of the Old Continent. In a week in which the inflation data in the United States will be the main reference for the market, investors continue to pay attention to Donald Trump and any speech that clarifies the scope of his next tariff policy. This will have its main impact on China, but also on economies like Germany that depend in part on the activity of the asian giantwithout taking into account the tariffs that could directly affect Europe.
“Trump is assembling a foreign policy team full of tough on China politicians that will worry Beijing“commented the head of studies and analysis at the Asia Society Center institute, Neil Thomas. In fact, the main Asian indices reflected this fear of a trade war. The us dollar boost caused a cut of more than 2.5% in the case of the Hang Seng while the Japanese Nikkei fell 0.7%.
The EuroStoxx 50 lost the support that it presented at 4,900/4,870 points. His transfer opened the door to a broader consolidation phase, similar and proportional to the last consolidation phase prior to the August fall. This, from a technical analysis point of view, is good news. According to the advisor ecotraderJoan Cabrero, the EuroStoxx 50 is approaching September minimum zone at 4,730 points. “In the worst case it will land at 4,675/4,700 points, I would see it as an opportunity to buy the European stock market again with a much more attractive risk-return equation than weeks ago,” Joan commented.
In this sense, the expert points out that the European stock market will not show signs of weakness while the EuroStoxx 50 do not miss the August lows at 4,470 points. “I would not advise drastically reducing exposure to the European stock market as long as this reference is not lost,” commented Cabrero. Thus, the EuroStoxx is located at a drop of 3.1% from its buy zone.
The Republican victory in the United States elections made the dollar one of the favorite assets for investors due to the looming trade war and its condition of refuge value in the face of adversity. The dollar has gained 3.7% against the euro since 2024 began and leaves the exchange rate between both currencies at $1.063. That is to say, The euro is less than 0.2% away from hitting new lows for the year.
But the euro is not the only currency that is declining against the greenback. The ten most important currencies in the world after the US dollar they fall on average almost 5% this year. The market is pricing in that Donald Trump’s plans to cut taxes and increase tariffs will bring more inflation. That is, in this environment the dollar would find reasons to remain strong in the currency market with a Federal Reserve that could be forced to moderate its interest rate cutsaccording to Bloomberg.
Bitcoin is approaching $90,000
He rally of bitcoin takes the cryptocurrency most followed by the market to almost $90,000 in a context in which the dollar also shows its strength in the traditional currency market. Bitcoin exceeds $89,800 this Tuesday, leading to the market cryptocurrencies to exceed 3.1 trillion dollarsa historic amount above its previous record scored during the pandemic, according to Bloomberg.
Since the election result in the United States was known, the largest decentralized asset on the market is up more than 30%. And the next president of the country would have promised some more flexible policies around the world of cryptocurrencies and a strategic reserve of bitcoins by the United States. So far this year, this cryptocurrency has advanced 110%.
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