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STOXX Higher, Although Bulls Fail To Test Firm Resistance

EQUITIES

European equities have firmed on the day, with participants pointing to the relaxation of Chinese international travel limitations and a feeling that the U.S. executive order that will prohibit some investment in sensitive technologies in China is a little softer than what could have been seen.

  • The Euro STOXX 50 index is +0.9%, while the futures equivalent is +45, comfortably shy of best levels.
  • Consumer discretionary names have been aided by yesterday’s news on Chinese travel, while Allianz earnings have supported the financial sector.
  • Novo Nordisk comments re: limitations of the supply of an obesity-fighting drug cap gains in the health care sector, with the name lower on the day.
  • Siemens struggles post-earnings, with the company warning on the outlook for China.
  • Technically, a bearish threat in Euro STOXX 50 futures remains present following the reversal from the Jul 31 high. A move beyond lows of recent sessions would open 4,220.00, the Jul 7 low and a reversal trigger. Initial firm resistance is 4,424.00, the Aug 2 high.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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