European indices ticked higher on Wednesday, continuing the trend registered in Asia overnight, as investors’ risk appetite accelerates. The fact that President Trump has said to be in favour of alternative stimulus measures as well as a new support plan for the airline sector, is boosting market sentiment and offsetting this morning’s disappointing German Industrial Production data for August. However, traders are likely to face another volatile trading session today with ECB President Christine Lagarde speaking at a conference in Paris as well as minutes from the last FOMC meeting due later today. In addition, investors will also keep their focus on the US with the first vice-presidential debate where more details are expected on the economic and international position of a potential Biden administration.
The Stoxx-50 Index is now trading inside its major resistance zone between 3,220pts and 3,240pts where a clearing could unlock an extended rally towards 3,300pts, 3,350pts and ultimately 3,395-3,400pts. A failure under this level would drive the price back to 3,145pts and 3,050pts very quickly.
