European indices moved higher amid hopes for upbeat 2023
European indices started to recover strongly during yesterday's session, but it is today the indices are shining strongly in the green. Almost all cash indices rose over 1%. Upward move is slightly lower in the case of contracts. The EU50 (Eurostoxx 50) contract rose almost 1%, while the DE30 (DAX contract) added 0.6%. Investors hope that the current price level takes into account the expected decrease in profits next year, and are counting for an improvement in the macroeconomic environment. PMI indices suggest a recession in the near future, although at the same time Citi's data surprise index is at its highest level since March. Of course, it is also worth mentioning gas prices, which today again fell below EUR 100/MWh, which is optimistic given the still relatively low consumption.
Yesterday, a pinbar appeared on the EU50 and DE30 charts. Both instruments are very strongly correlated with each other, although it can be seen that the EU50 is currently performing slightly better compared to its German counterpart. The nearest strong resistance is located at 3900 points. Source: xStation5
Start investing today or test a free demo
Open real account TRY DEMO Download mobile app Download mobile app
The surprise index for data releases for Europe is at its highest since March, which may mean that the worst is behind us. Source: Bloomberg
The projected EPS has been clearly declining for a long time, which is why the market hopes that it is already priced in by the European market. Source: Bloomberg
