European equity markets are trading slightly lower this morning, with the German index down 0.50 per cent on the day – Stock Market Analysis Today – Equity markets take a breather, but charts hint at further gains
Following an impressive rally, stock markets are taking a breather.
However, the charts are hinting at further gains. The DAX has cleared a major hurdle at 13,000 points and bulls have regained the upper hand.
Not all investors are convinced by the stock market euphoria. Many questions about the potential COVID-19 vaccine remain unanswered, and significant hurdles persist.
Nevertheless, few are willing to bet against the market. With the US elections behind us, a major source of uncertainty and fear is gone, and risk appetite has picked up significantly.
The recent announcement by Pfizer raised the hopes of bringing the world a bit closer back to normality and ending a series of painful lockdowns and restrictions.
This could also trigger a rotation out of tech stocks and into value sectors.
For European markets – which are far less dependent on technology stocks – this would be welcome news and give them a chance to catch up with their American counterparts.
Stock Market Analysis Today – Equity markets take a breather, but charts hint at further gains