The euphoria on stocks continued into the last trading week before Christmas. This “risk-on” tone was further boosted after President Trump’s approval of the highly awaited “phase one” deal with China, with investors hoping for such an agreement before the end of the year. Market sentiment has also been lifted early this morning after Chinese industrial production beat estimates.
Photo by Marcin Nowak.
Elsewhere, investors also welcomed Boris Johnson’s re-election as Prime Minister, a victory that also provided the Conservatives with a clear majority in Parliament, which should finally allow the nation to get Brexit done by the end of January.
Investors who were awaiting short or mid-term clarity on the global outlook have now been served with two of the main drivers showing strong signs of improvement, paving the way for an extended rally on stocks before January. The Stoxx-50 Index registered a solid rebound over the crucial 3,730pts level, a zone that was previously offering a strong resistance. Prices will now have to clear the 3,765pts in order to reach higher tops, with the psychological level of 3,800pts in sight.
