European stocks had a mixed opening on Thursday ahead of a busy day of releases, including the latest US unemployment figures as well as a new batch of corporate results. Investors welcomed encouraging data on the virus front, especially New York City reporting its lowest death toll since early April while the number of cases is also trending lower on the old continent.
However, investors around the world are still struggling to assess the pandemic’s damage to corporate profitability and this keeps on weighing on traders’ risk appetite, making it unlikely that any new highs will be achieved before the end of the month. Today’s earnings are more focused on Europe with big French and German names like Bouygues, Renault, Vinci and Schneider Electric reporting results.
Photo by Ondrej Trnak.
The CAC-40 Index is one of the eurozone’s best performers today as with the price still trading above 4,400pts. However, the technical configuration provides cause for concern as the market recently broke out of its short-term bullish trend line with this change in sentiment also backed up by the RSI indicators. A fall below 4,330pts would pave the way to bearish moves towards 4,190pts, then 4,100pts and 3,990pts by extension.
