The first session of November points towards slight increases on the Old Continentjust like the futures arrive before the opening. This small rebound does not compensate for the sharp drop in recent days, which maintains a weekly balance with drops greater than 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 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 wider consolidation phase, which does not surprise me because it corresponds to what I thought could happen weeks ago, which would be more similar and proportionate to the last consolidation phase before the ‘autumn of August,’ explains Joan Cabrero. , Ecotrader advisor.
“The good news is that if this broader consolidation finally comes to fruition, it could take the EuroStoxx 50 to the September low zone of 4,730 points and, in the worst case, 4,675/4,700 points“, he continues. “A fall in these supports would be considered an opportunity to buy the European stock market again,” he continues. “As long as the EuroStoxx 50 does not lose the September lows at 4,730 points and , above all, 4,675/4,700 points “I am not in favor of reducing exposure to the stock market of the Old Continent,” concludes Cabrero.
Next week is the US presidential election, probably the most important political event for the markets every four years. The market is waiting for what will happen this Tuesday, two days before the Fed meeting to decide on interest rates, where a further reduction of 25 points is expected the basics.
Fixed Income Futures they aim for a day of shopping in the main benchmarks after several weeks of decline where expectations of a less aggressive monetary policy weighed on the pace of declines given the indices which suggest that inflation is not completely under control.
