European stocks follow Wall Street’s bullish momentum

European Markets

European Shares recovered losses following a green close on Wall Street yesterday. And after markets have already digested high inflation data from the Eurozone. Markets have now priced in a 50-basis point hike by the European Central Bank in Mid-March, shaking up investors in the region throughout the week but sentiment found a silver lining on dovish Federal Reserve remarks that will affect global economies.

From the data side, the CPI Flash Estimate for February came in at 5.6% vs 5.3% expected and 5.3% previous, higher than expected increasing investor worries, however, the Year-on-Year flash estimate according to Eurostat is expected to inch down to 8.5% down from 8.6% previous but it still points to an increase from market expectations set at 8.3%.

The figure negatively European stocks yesterday, but stocks have managed to find strong footing at the end of the trading week.

US Futures

Major indices futures are in attempt to reverse a downward trend on the Daily frame, on the back of a softer tone from Atlanta Fed official Bostic on the future of hiking interest rates.

The S&P500 is found hovering near the $3,992 while the Nasdaq futures broke above $12,000.

Commodities

Gold prices hover near $1846, after managing to break above key resistance levels of $1830 & $1840.

In February the yellow metal was severely affected after the astounding release of the NFP report reflecting the strength of the US economy that came in at 517,000 Jobs Vs 193,000 expected. The report also caused the USD to surge above levels of 105. Pushing gold prices below the $1800 key support. But prices were able to recover starting March on a good note.

Oil prices continued to rise in today’s European session for the fourth consecutive day, supported by US crude oil inventories reading that dropped to 1.2M vs 7.6M previous. Brent has notched back its $84 level while WTI stabilized near $78.