EURO STOXX50 Gaps up on the Open – Further Upside Expected
Feb, 01st 15:47
European shares were trading higher on Thursday after three days of losses, supported by a flurry of mostly positive results and gains by banks after the U.S. Federal Reserve flagged higher interest rates later this year.
European, oil major Royal Dutch Shell fell on disappointing fourth-quarter cash flow and insulin maker Novo Nordisk declined after its chairman quit and it reported operating profit below expectations.
But several other big companies, from Nokia to Roche, Unilever and Dassault Systemes, were up after their profit updates, helping the pan-European STOXX 50 benchmark index rise 0.37 percent.
London’s benchmark FTSE 100 index of leading blue-chip companies rose almost 0.2 per cent to 7,544.53 points, compared with the closing level on Wednesday. The DAX 30 added nearly 0.4 per cent to 13,235.19 points, and the Paris CAC 40 climbed 0.5 per cent to 5,510.59 points.
In earnings, NEX Group rose 8.4 percent to the top of the STOXX50 Index after revenues rose. The financial technology firm benefited from the market it said was ‘noticeably’ more active this year.
Overall fourth-quarter earnings for the broader STOXX 600 Index are expected to increase by 11.9 percent year on year, the latest Thomson Reuters data showed.
On the technical charts, EURO STOXX 50 is trading sideways above the 50 day and 100 day and the 200 day moving averages, but below the 9 day and the 20 day moving average. The RSI is at 50.6. The MACD is below the signal line, but ready to make a positive crossover above the signal line.
Buy digital Call options between 3617 and 3625, valid until 23:00 GMT February 1st 2018