A raft of bullish factors saw European Stocks open significantly higher, following the tone set by Asian markets overnight, and with US Futures also pointing to a firmer open, trading optimism has rarely been this high. The party goes on for stock traders after the ECB surprised investors by announcing a higher than expected top-up to its rescue plan, boosting confidence in stock markets and sending prices to new highs. This sentiment is also being shared by US stock investors after Washington also unveiled an unprecedented USD 1 trillion plan to fight the pandemic effect. Meanwhile, existing bearish leverages vanished after pandemic easing continued to pile up in many different regions, while investors also cheered the latest softer tone in US-Sino relationship, allowing the current euphoria to continue further. The main market mover remains the US Job report today with investors expecting a significant increase which could drive prices even higher, close to their pre-crisis level ahead of the weekend.
The Spanish IBEX-35 index has registered the best performance in Europe so far, after the market successfully cleared the 7,500 Pts level (38.2% Fibonacci) following the exit of the horizontal consolidation phase seen recently. Prices will now head towards the next major technical resistance at 8,000 Pts, with 7,650. Pts the first support level.
