Daily Alert – Tuesday 25th April 2023: Institutions see big drop in Euro equities

Mark NugentApril 2023, Daily Alert

Daily Alert – Tuesday 25th April 2023: Institutions see big drop in Euro equities

Good morning.

Hi, it’s Mark here. This week’s content will be text-based.

What’s Happening?

Sentiment was moderately risk-on yesterday. Having said that, there’s an argument that equities really went sideways, which would have made overall sentiment indecisive. In other words, it’s quiet.

There were no Tier I announcements on the economic calendar.

Media

In the media, US President Joe Biden announced he is running again in 2024.

A Bloomberg survey of financial institutions predicts a fall of as much as 19% in European equities as the continent’s economy slows at the same time as the European Central Bank will be forced to keep rates high due to the persistence of inflation.

Trades update

The EUR and GBP were strong yesterday and the USD and JPY were both weak. Looking at the four pairs this suggests, the clear winner from a technical point of view was EURJPY as it broke up through resistance. I went long. Needless to say, it has reversed but we are still alive.

Looking ahead

There are no Tier I announcements today. Equities are moving down as is the US 10-Year yield. It’s a bit gloomy, and quiet. I’ll sit here are worry about my EURJPY trade.

I’ll be back tomorrow.

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