European equity markets are poised for another day of gains, riding on a wave of optimism following recent uncertainties. Investors are optimistic about the forthcoming macroeconomic data, shifting their focus towards assessing corporate fundamentals for investment opportunities.
Technically, the EuroStoxx 50 faces a challenge in surpassing the 4,700-point mark. According to Ecotrader advisor Joan Cabrero, breaking this level could pave the way for a notable upswing towards 4,870 and 4,900 points, offering a buffer against bearish risks.
Cabrero underlines that the current market conditions present favorable prospects, particularly if the index finds solid support within the 4,600-4,675 points range. However, he advises a more cautious approach, suggesting waiting for a stronger support level at 4,400 points, which he describes as a genuine “Christmas offer.”
On a global scale, the release of US inflation data for July today is anticipated to show a 0.2% increase from June. Any significant deviation from these projections could trigger notable market responses.
Market analysts speculate that the Federal Reserve might implement a substantial 100 basis points interest rate cut before the year concludes, impacting not only equities but also currencies and government bonds. Recent trends indicate increased purchases of US Treasuries, bringing them closer to the year’s lows.
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