European Stock Futures Edge Higher

European Stock Futures

FTSE 100 is trading up 0.43% at 7054.90

European stock markets traded higher Friday, ending a difficult week on a positive note despite disappointing Chinese growth data and an uncertain political situation in Italy.

By 04:15 AM ET (0815 GMT), the DAX in Germany traded 1.3% higher, the CAC 40 in France rose 0.5%, and the U.K.’s FTSE 100 climbed 0.8%.

The main European indices pushed higher Friday, helped by reduced expectations of a 100 basis-point hike by the Federal Reserve later this month after known hawks Fed Governor Christopher Waller and St. Louis Fed President James Bullard both said they favoured another 75 basis-point hike for this month, in spite of Wednesday’s red-hot inflation figures.

A sharp increase in U.S. interest rates runs the risk of sending the U.S. economy, the world’s main growth driver, into recession.

The tone has also been helped by the decision of Italian President Sergio Mattarella to reject the resignation of widely respected Prime Minister Mario Draghi after he had decided to quit on losing the support of one of the country’s largest political parties from his broad coalition government.

Fears of a global economic slowdown had plagued stock markets for much of this week, and further evidence of this emerged earlier Friday after China’s economy contracted sharply in the second quarter. Its GDP fell 2.6% from the previous quarter, compared with a revised 1.4% gain in the previous quarter, highlighting the toll on activity in the world’s second-largest economy from widespread COVID lockdowns.

On technical fronts FTSE 100 RSI stood at 42.14 and currently it is trading below all MA. So, SELL position can be taken with following target and stoploss:

TRADE SIGNAL – : FTSE 100 – SELL: 7052.70, TARGET: 6972.40, STOP LOSS: 7159.80

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