European shares drifted lower on Thursday, following Asian markets and US futures amid global risk aversion sentiment boosted by mounting virus concerns. Stock investors remain stuck in uncertain times, with various market drivers to be considered before making their investment decisions, leading to the current lack of directionality. Whilst the next US stimulus move is already highly anticipated by most traders, most are keeping a cautious eye towards macro data as well as corporate news in order to get more clues on the impact of the pandemic. Today’s trading sessions will be marked by major US data, with initial jobless claims and existing home sales data for September due later today, as well as earning reports from large US groups like Coca Cola, AT&T and Intel. In Europe, stock investors expect more volatility on the CAC-40 index as a batch of results from French-listed companies like Dassault Systemes, Hermes, L’Oreal, Kering, Thales and Michelin are awaited during and after the trading session.
The market
went to test its major support zone around 4793 pts shortly after the opening
bell, and has successfully rebounded since then. Prices will have to clear the
4,800 pts level in order to unlock the bullish potential towards 4,830 pts on
the very short-term. A break out of the 4,772 pts/4,804 pts zone could quickly
drive prices deeper towards 4,745 pts and 4,665 pts by extension.
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