The EuroStoxx 50 index has faced challenges in recent months due to geopolitical tensions and economic uncertainties. The CAC 40 has been particularly vulnerable due to economic difficulties in China and a political crisis in France.
After reaching a peak in April, the EuroStoxx 50 has been in a consolidation phase for over six months, reflecting caution among investors. Recent developments suggest that the European stock market may rebound in the short term, as bond yields are decreasing. This could make stocks more attractive relative to fixed-income investments.
The upcoming German elections could also stabilize the market if the leading party implements a pro-business agenda. However, there are risks such as increased tariffs from the United States and the French government's budget. The performance of the EuroStoxx 50 will depend on the global economic outlook.
Technical analysis shows that the index is currently trading around a support level, and if it rebounds, the first resistance to monitor will be the bearish trend line. If it dips below the support, it could trigger a correction. For investors considering a position in the EuroStoxx 50, a proposed strategy involves entering a buy order above the support level with objectives set at the resistance level. It is important for investors to remain vigilant and responsive to technical signals and macroeconomic developments.