Going forward this week the emphasis is going to be on the Credit Default Swaps and the PCE inflation report from the United States economy. A strong number is likely to sink stocks as it could mean the Fed is likely to continue hiking.
The EURO STOXX50 is worth watching closely as it can get the overall market mood in Europe. Plus, it is heavily speculated on by investors across Europe. Deutsche bank being an EU bank makes it likely to be effected positively or negatively.
Basically, the EURO50 a stock index of Eurozone stocks designed by STOXX, an index provider owned by Deutsche Börse Group. The index is composed of 50 stocks from 11 countries in the Eurozone.
The EURO STOXX50 represents Eurozone blue-chip companies considered leaders in their respective sectors. The EURO STOXX50 Index is derived from the 19 EURO STOXX regional Super sector indices.
As of April 2021, the most countries with most companies represented are France, representing 36.6% of all total assets and Germany at 33.2%.
High levels of bearish sentiment are still being seen towards the EURO50, with some 68 percent of traders currently holding a negative view towards the European stock composite.
This large bearish sentiment bias probably hints that we are close to a major reversal to the upside and more gains are likely.
EURO50 Short-Term Technical Analysis
The EURO50 still looks pretty bullish on the lower time frames despite the big pullback last Friday from the 4,200 level as European stocks took their cue from banking fears in Europe.
According to technical analysis we could be see more upside above the 4,320 level, and especially if a new high is made this week above the key moving averages then the 4,320 level looks likely.
EURO50 Medium-Term Technical Analysis
The EURO50 is likely to head lower as it tests towards its 50-day moving average the daily time frame. A break under the 50-day is typically considered very bearish over the medium-term.
A break of the 4,200 level could cause a further 200 point rout to the upside, which would drive the index towards the 4,400 area.