European Shares Edge Lower After Stocks Climb in U.S., Asia
European stock markets fell in early dealmaking on Wednesday, as a positive handover from Wall Street and Asia lost some steam.
By 03:15 ET (07:15 GMT), the DAX in Germany traded 0.43% lower, the CAC 40 in France slipped by 0.48%, and the U.K.’s FTSE 100 dropped 0.45%.
European equities had started the new quarter strongly, closing 3% higher yesterday, after fears over weakening global growth and aggressive monetary policy tightening weighed on their performance over much of the previous three-month period.
The declines come after weak U.S. employment data helped boost investor expectations that the Federal Reserve may begin to pull back on a recent series of interest rate hikes, which subsequently gave a lift to shares on Wall Street. Meanwhile, Asian stocks also rallied as Hong Kong’s market reopened after a holiday.
Weighing on sentiment in Europe was the latest trade balance data out of Germany, which showed a narrowing in the country’s surplus. The balance of exports and imports from the continent’s largest economy came in at 1.2 billion euros in August, down from 3.4 billion euros in July. Exports to other European Union countries from Germany also contracted, in a possible sign of a slowdown in external demand for goods made by Germany’s key manufacturing sector.
In corporate news, shares in France’s STMicroelectronics NV (EPA:STM) rose after the European Commission gave the green light to Italy to provide state aid to the semiconductor manufacturer that will go towards building a silicon carbide wafer plant in Sicily.
CAC 40 Technical Analysis: Daily Chart
In the daily charts, CAC 40 was trading in down channel. CAC 40 is currently trading below 50 and 100 days SMA & above 20 days SMA.
RSI is in buying zone which indicates bullishness. MACD is currently above zero which indicates bullishness.
Its immediate support is 5917.24 & the resistance level is at 6019.50.
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 until their trend reversal. So, remain bullish on CAC 40 INDEX.
