Yesterday, the Europe 50 index was at a high of 4,416.8 points, which exceeds the highs of autumn 2021. Here are the factors that contribute to the more bullish dynamics of European stocks compared to US stocks:
→ the banking crisis affected European banks to a lesser extent than in the US;
→ the growth of the Chinese economy, in relations with which Europe has fewer restrictions than the United States (Macron's recent visit to China confirms this);
→ strong performance in selected sectors: luxury goods and aircraft manufacturing in France and automotive manufacturing in Germany.
On Friday morning, releases of PMI data in Germany and France are expected, which can push the stock market to new heights or lead it into a correction. In the second scenario, the level of 4,320 may support the European stock market, as well as the median line of the rising channel (shown in blue).
This forecast represents FXOpen Companies' opinion only, it should not be construed as an offer, invitation, or recommendation in respect of FXOpen Companies' products and services or as financial advice.
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This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.