AvaTrade - Analytics


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    European markets closing the week on higher note

    European markets are trading higher this morning and set to end the week on a higher note on the back of mega mergers and sufficient liquidity in the market. This has been immensely eventful week, it was the first time since the crash of the oil price that we have seen the first victim coming under the umbrella of M&A and given that Saudis are determined to ramp up their production to take out the smaller players, the M&A trend could become extremely intense in the coming weeks.

    Greece has shown the world that they stand by their words and have proved and crushed all the speculations yesterday by paying their bill to the IMF. The finance minister does mean business when he says it and he has shown a clear evidence of this yesterday. However, this hasn’t stopped the selloff in the euro which is once again under the selling pressure today and sharply moving towards the critical level of 1.05.

    Back in Asia, the markets closed mostly higher and the Chinese economic data, CPI inflation confirmed that prices have become more stable as the final reading printed the same number as the last time which was 1.4%. However, the index is still extremely fragile and lower commodity prices is still very much in the focus and this keeps the door open for more stimulus from the people bank of china.

    The precious metal is trading below the critical level $1200 which separate this from bullish to bearish view and the near term support is near the $1160 mark. We do have the Fed member Lacker speaking this afternoon which is followed by the Federal budget balance data and this could bring some small swings however given that it is the end of the week, we do not expect most traders closing their position by the end of trading day today.


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