My news headlines are speculative of a rate cut being delivered by the ECB. If the German industrial locomotive has halted, along with the French and Italian economies – and financing costs are the reason – that would seem an adequate enough reason for the ECB to ease financing conditions. However, this is headline reading. I have not done any research to be able to concur or form a qualified opinion about the news headlines I am reading.
If I consider technical analysis, there is a saying that bear markets unfold with “clean” wave counts. If that is the case, FESX had its latest top on 5106 on 30th September. If 5 waves down are unfolding, 4903 to 4914 should be resistance, as 38% of the latest move down has been retraced today 4855. That would, however, indicate that Europe is in a bear market. Maybe the market is waiting for a rate cut? Economically, an aggressive rate cut would indicate that the economy is indeed on a shaky footing, and needs support.
Armed conflicts persist, both in Europe and the Middle East, though cease fires are being floated. I am unsure if these are already priced in.
I still do not see an indication of upside momentum.
