EU Market Review 11th June 2021

by Elina Nikolova

LUIS VUITTON MOET HENNESSY share reached new highs on Jue 9th registering a top at 667.50. The price now is trading above the 50 period Moving Average on the four-hour chart at around the 660.00 level. The Relative Strength Index (RSI) is in bullish territory and is slping upwards indicting a potential for a further rise. However, there is a divergence between the price registering consecutive higher tops, as the RSI is registering consecutive lower tops, which is a sign of potential weakness.
For the bulls, important resistance levels exist at the June 9th top at 667.50, also at the 700.00 psychological price level and finally at 261.8% Fibonacci extension target at price 704.50.
For the bears, important support levels exist at 646.30 level where the price bottomed on the 4 hour chart on June 7th, also at 640.10 iniside swing support from the April 29th top, and finally at 631.60 inside swing support from the May 17th top.

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• It’s a quiet day ahead on the Eurozone economic calendar. That leaves updates from the G7 Summit. During the day the G7 meetings will be taking place and both the comments of and statement of participants can create significant market volatility.

• European stocks inched to fresh peaks on Thursday but closed slightly lower as the European Central Bank raised its recovery outlook and promised to keep ample stimulus flowing, while travel stocks fell after a recent run of gains.
The pan-European STOXX 600 index was up just 0.1%, but at a fresh record high of 455.76 points, while the narrower index of euro zone stocks fell 0.1%.

• French Industrial production figures for April disappointed, as industrial production fell by 0.1% versus a forecasted 0.5% increase. Production had risen by 1.0% in March.
In Italy, industrial production rose by 1.8%, following a 0.3% increase in March. Economists had forecast a more modest 0.3% increase. Year-on-year, production was up by 79.5% versus a forecasted 72.2% rise. In March, production had been up by 38.4% year-on-year.

• The European Central Bank announced on Thursday its decision to keep key interest rates at present levels as well as to keep its asset purchase program unchanged, as expected.
The interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility are to remain unchanged at 0.00%, 0.25% and -0.50% respectively.

• European Central Bank (ECB) President Christine Lagarde revealed on Thursday that the bank expects the Eurozone inflation rate to hit 1.9% for the entire 2021.
The inflation figure for 2022 is now seen as standing at 1.5%, she specified at a press conference, adding that inflation estimations for both years have been revised up from the previous ECB projection.

• At 06:00 (GMT) EU German Wholesale Price Index (WPI) was due. It's a measure of the change in the price of goods sold by wholesalers. It's a leading indicator of consumer inflation - when wholesalers charge more for goods and services the higher costs are usually passed on to the consumer.

• At 06:00 (GMT) UK Construction Output m/m will be announced. This indicator measures the change in the total amount builders spent on construction projects.
• At 06:00 (GMT) UK GDP expected. It's the primary measure of the monthly change in the total value of all goods and services produced by the economy.

• At 08:00 (GMT) EU Italian Quarterly Unemployment Rate will be published. This report indicates the percentage of total work force that is unemployed and actively seeking employment during the previous quarter.

• At 08:30 (GMT) UK GDP expected Bank of Englad (BOE) governor Andrew Bailey is due to speak at an online event hosted by the Bank for International Settlements.

European indices yesterday:

• DAX: -0.06%
• EURO: -0.02%
• MIB: -0.40%
• CAC: -0.26%

Sources: Investing.com, forexfactory.com