Shares rose almost everywhere across the world on Thursday, with most benchmarks registering recovery rallies following the highly anticipated comment from President Trump on Iran last night. Many traders welcomed the fact that Donald Trump, against all odds, softened his tone by preferring not to take any military response to the last Iranian attack, de-escalating the conflict between the two powers. This gave relief to stocks and other risky assets overnight, reviving market sentiment everywhere and registering a sharp decline on safe havens as a diplomatic solution to the conflict is now in sight. The current calmer geopolitical tone, if it lasts, will allow stock traders to switch their focus back to data, in order to assess the health of the US economy, with the December Non-Farm Payroll looming on Friday.
Meanwhile in Europe, the Stoxx-50 Index jumped following the opening bell, with almost every sector, except Energy and Real Estate, in green territory. The DAX-30 Index in Frankfurt is the eurozone’s best performer by far as the market is now trading above 13,500pts after having cleared resistance at 13,445pts. The 21-day moving average is now rising again and the current rally may be extended to 13,700pts and 13,890pts on a short-term basis if prices manage to clear the psychological and technical level (38.2% Fibonacci) of 13,500pts.
