Skip to content

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please ensure that you fully understand the risks involved.

European stocks rise as geopolitical tensions ease and earnings season looms

European equity markets start the week confidently, buoyed by diminished geopolitical concerns and the anticipation of crucial earnings reports from top US and European firms.

Source: Getty

Tracking financial profitability in the face of rising rates

European equity indices kicked off the new week on a firmer footing, supported by easing geopolitical tensions and ahead of key earnings releases in the US and Europe.

While US Megatech names will likely hog the spotlight, this week's focus of the European earnings season will be on banking names, including Deutsche Bank, Barclays, and Lloyds. Investors will be eagerly looking for clues on how higher interest rates are impacting profitability and whether the post-banking crisis rally in banks' share prices can continue to run.

In terms of macro data, investors will closely look at the release of European and UK PMI data tonight and the German Ifo business survey to fine-tune the expected timing of the first BoE and ECB rate cut, currently 65% priced to start in June.

What is expected from EA PMI for April

Date: Tuesday, 23 April at 6pm AEST


In March, the Eurozone composite PMI printed at 50.3, the highest level in ten months. This was a significant improvement from 49.2 in February and marked a return to growth for the eurozone's private sector for the first time since May last year.

For April, the market is looking for an improvement to 50.9, driven by growth in Germany and France, with a broad-based improvement expected across most sectors.

EA PMI decrease over five years

Source: TradingEconomics

DAX technical analysis

A third consecutive week of weakness saw the DAX fall through uptrend support at 18,050/18,000 (drawn from the October 14,666 low), opening the way for the DAX to test support at 17,600, in line with our view from last week.

While a short-covering rally from here would not surprise (as part of a B wave of an ABC correction), we would need to see the DAX reclaim resistance at 18,200/18,400 to suggest that the correction is complete. Until then, we expect bounces to be temporary and for the correction in the DAX to continue (as outlined on the chart below).

DAX daily chart

Source: TradingView

FTSE technical analysis

Last week, we speculated whether the FTSE could still test and break its all-time high of 8,047 before a push towards 8,250 or whether the deterioration in risk sentiment meant it had missed its chance.

The ability of the FTSE to hold well above the medium-term support last week at 7,760/7,720, followed by a stunning rebound, has all but answered that question.

In summary, providing the FTSE holds above support at around 7,760, expect a break of the all-time high at 8,047 before a push towards 8,250.

FTSE daily chart

Source: TradingView

  • Source TradingView. The figures stated are as of 23 April 2024. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.

Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

Start trading forex today

Trade the largest and most volatile financial market in the world.

  • Spreads start at just 0.6 points on EUR/USD
  • Analyse market movements with our essential selection of charts
  • Speculate from a range of platforms, including on mobile

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Tuesday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.