EURO STOXX 50 Opens Gap Down As Trade Fears Make Comeback – Market Cautious
European shares opened lower on Wednesday after the resignation of Donald Trump’s economic adviser Gary Cohn, seen as a bulwark against protectionist forces within the U.S. government.
The pan-European STOXX 50 (STOXX) index was down 0.14 percent while Wall Street futures were trading in negative territory.
“Gary Cohn’s departure rattled markets and equity markets look set to fall on the open. Stocks have declined overnight in Asia and it’s looking like it will be read today on the open”, Neil Wilson, a Senior Market Analyst at ETX Capital told his clients in a morning note.
The advertising sector retreated after the Financial Times said P&G would cut agency spending by 1.25 billion dollars over three years. France’s Publicis and Britain’s WPP fell 1.9 percent and 1.6 percent respectively.
British plane engine maker Rolls-Royce was the best Stoxx index performer, surging 8.5 percent after saying it remained on track to meet its financial goals for 2020.
On the technical charts, EURO STOXX50 is trading below all the moving averages (9 day, 20 day, 50 day, 100 day, and 200 day). The RSI is at 38.31 and the MACD is below the signal line. The market is expected to recover for the day.
Buy limit at 3348, Take profit at 3357, Stop loss at 3339