European equities softened on Wednesday as risk appetite wanes, but DAX holds on
|- European stocks mostly saw declines on Wednesday.
- Major indexes added to recent declines despite DAX holding steady for the day.
- Rate cut expectancy from the ECB is getting readjusted, easing investor appetite.
European major stock equities largely saw declines on Wednesday, driven lower as markets readjust their bets on the pace of rate cuts from the European Central Bank (ECB). The European Unemployment Rate continues to hold relatively steady, printing at 6.4% in November compared to the previous 6.5%, and the lack of declining employment is chipping away at odds of a faster pace of rate cuts from the ECB.
ECB policymaker reaffirmed their current stance on rate hikes, noting that a technical session could be hiding behind the data, but market hopes for rate declines could have run too far ahead of what central banks are prepared to deliver at this time.
With rate cut hopes fading, European equities are facing overall declines, with the pan-European EUROSTOXX 600 equity index declining nearly a fifth of a percent, falling 0.84 points to close at €476.42. France’s CAC 40 slipped a scant 0.01%, falling half a point to €7.426.08, while Germany’s DAX 40 held relatively steady, stepping up a slim 0.01%, closing up 1.45 points at €16,689.81.
Meanwhile, London’s FTSE 100 major equity index fell 32.2 points to close down 0.42% at £7,651.76.
FTSE Technical Outlook
The FTSE 100 fell 0.51% peak-to-trough on Wednesday, getting knocked back into near-term lows as the index corkscrews through technical barriers at the 50-hour and 200-hour Simple Moving Averages (SMA), with the longer moving average rotating into a flat stance near £7,700.
Despite near-term downside pressure, the FTSE 100 has managed to hold onto bullish territory, trading north of the 200-day SMA near £7,575, and London’s leading equity index is up 5.5% from last October’s low bids near £7,255.70.
FTSE Hourly Chart
FTSE Daily Chart
FTSE Technical Levels
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.