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• European stock markets trade cautiously as investors eagerly await key data releases, including Eurozone GDP numbers and the German economic sentiment ZEW survey.
• Ongoing debt ceiling discussions in Washington hold market participants’ attention, mitigating the risk of a potential default.
• Corporate news highlights Vodafone’s plans to streamline operations with 11,000 job cuts, while Telecom Italia faces challenges amidst legal obstacles to acquiring its landline grid.
• Bouygues, a construction-to-telecoms conglomerate, reports an unexpected quarterly operating profit, and Boohoo, an online fashion retailer, exceeds expectations with a robust core profit forecast.
• The euro remains steady around $1.09, near its 12-month high of $1.1, driven by expectations of continued tightening of monetary policy by the European Central Bank (ECB) to combat inflation.
• Eurozone GDP growth forecasts are revised upward, with projections of 1.1% for this year and 1.6% in 2024, while inflation rates are expected to rise to 5.8% in 2023 and 2.8% in 2024.
• Market observers anticipate the ECB gradually increasing the deposit facility rate, potentially reaching a peak of around 3.7% by September, with the possibility of extended interest rate hikes to manage inflationary pressures.

The daily interval of the Euro STOXX 600 has been trading within a balanced price range for several weeks, currently testing resistance near the upper extreme. Meanwhile, the market hovers slightly above the developing value areas of the Year, Quarter, and Month, indicating a delicate equilibrium.

Based on current internal calculations, today’s session suggests a slight inclination towards the upside, with the potential for absorption around the market’s highs during the New York trading session. However, the outcome will depend on the forthcoming economic data.

In the intraday interval, we observe a swing failure with supportive buyers around the prior VWAP close level, which could further support an upward bias as the market retreats back into the developing value, potentially targeting the highs. It’s worth noting that today’s slight strength of the euro might exert pressure on the market dynamics.

1 Month Ago

Currently, the STOXX 600 remains relatively unchanged, trading around €466.20 during the European trading session. Notably, in the previous session, the market experienced a modest 0.3% increase.

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