European Shares Open Week Lower Amid Ukraine Tensions, Rate Hike Possibilities
European stocks fell on Monday, as concerns mounted around the impact of both weekend shelling in Ukraine and aggressive central bank monetary policy actions.
By 04:21 ET (08:21 GMT), the pan-European STOXX 600 dropped 0.68% to touch a one-week low, the DAX in Germany traded lower by 0.23%, the CAC 40 in France fell 0.98%, and U.K.’s FTSE 100 moved down by 0.75%.
The declines come after a stronger-than-expected labor market report in the U.S. on Friday bolstered expectations that the Federal Reserve will continue to hike interest rates in a bid to quell soaring inflation, but potentially at the expense of wider economic activity and corporate incomes.
Meanwhile, Russian president Vladimir Putin is reportedly set to meet with his security council to discuss how to retaliate against Ukrainian forces after they carried out an attack on a major bridge between Russia and Crimea. Other reports say that residential areas of Ukraine’s capital Kyiv were hit by explosions on Monday morning, while social media posts suggest the cities of Zaporizhzhia and Dnipro were also hit by missile strikes.
Elsewhere, Asian stocks dropped sharply, although trading volumes were muted due to holidays in Japan and South Korea.
CAC 40 Technical Analysis: Daily Chart
In the daily charts, CAC 40 was trading in down channel. CAC 40 is currently trading below all SMA.
RSI is in buying zone which indicates bullishness. MACD is currently above zero which indicates bullishness.
Its immediate support is 5781.20 & the resistance level is at 5896.50.
CAC 40 INDEX was trading in down channel before there is breakout upside.
How to Trade CAC 40 INDEX this Week:
CAC 40 INDEX will follow the uptrend after the breakout upside. So, remain bullish on CAC 40 INDEX.
