RBA Pauses, But ECB Could Hardly Skip Hiking Next Week!
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RBA pauses, but ECB could hardly skip hiking next week!
By Ipek Ozkardeskaya, Senior Analyst | Swissquote Bank
Other than a nice 7% jump in Chinese property stocks following an apparently explosive weekend of home sales in Chinese big cities like Beijing and Shanghai amid the relaxed mortgage rules deployed by the government last week, we didn't have much on our plate yesterday. European trading volumes were down by almost a third below their 30-day average and the major European indices were slightly down, as neither Friday's jobs optimism in the US, nor the Chinese rebound on property news could help Europeans forget about their own slowing economies and sticky inflation, which probably require at least one more rate hike from the European Central Bank (ECB). The DAX remained offered near its 50 and 100-DMA, as the Stoxx 600 closed yesterday's session below its own 50-DMA. Americans coming back from their long weekend, after the latest data showed a sweet loosening in US jobs market last month, could add some optimism to the mix, but the topside in European stock markets remains limited.
There is one place on the old continent, however, where the stock market looks more promising, is the UK. The British FTSE 100 – which clearly lagged its continental European and American peers so far this year, is looking in a better place to outperform in the H2, because of its high exposure to energy and mining stocks. The FTSE 100 has potential for a further rise toward 7650 then to 7800 level.
Activity in FTSE futures hints at a bearish start today.
