EuroSTOXX: New Bullmarket - Target 5.500
Updated
"European stock markets join the world party" - this is BusinessDay.co.za, Capetown, Southafrica, headline on January 3rd 2018. And continues: "World stocks hit fresh highs on Wednesday with European markets joining the party as early indications suggest 2018 will be another year of synchronised global growth led by a shining European economy. ... MSCI’s index of global stocks, which tracks shares in 47 countries, pushed on to new record highs on Wednesday — after posting its biggest one-day gain in more than two weeks on Tuesday, and in the wake of its best year since 2009 in 2017." ... "Investors have woken up in the new year and looked forward to another firm year for global growth with very muted downside risk," said Investec economist Philip Shaw, though he warned against reading too much into the first two trading days of the new year." ... "This after Wall Street started the new year as it ended the old, scoring another set of record closing peaks. The Dow Jones industrial average rose 0.42%, while the S&P 500 gained 0.83% and the Nasdaq composite index 1.5%. The gains in riskier assets came as industry surveys from India to Germany to Canada showed quickening activity. "The breadth of the recovery is extraordinary," said Deutsche Bank macro strategist Alan Ruskin, noting that of 31 countries covered, only three failed to show growth while all the largest manufacturing sectors improved." Source: businesslive.co.za/bd/markets/2018-01-03-european-stock-markets-join-the-world-party/
Since beginning of 2016 Europe is showing strong fundamental data such as 8 consecutive quarters of growing GDP, record low unemployment rate and record TAX revenue surplus in Germany and record high PMI´s all over Europe. Same time most European Stockmarket Indices are far away from All Time Highs seen before 9/11, 2008´s subprime or 2011´s Euro crisis. The major reason are fears about "The Rise Of Populism" in Europe. In Dezember 2016 (Italian Constitutional Referendum), the France Election in April/May 2016, The Catalonien Crisis and now before the upcomming Italian Parliament Election the fears are traded (short) in "The Rise of Populism Trade". Expectations for the next Election in Italy in 2 month form now on are clearly negative, once more. If ever this fears are overdone than European Stockmarkets will be effected by this and will go higher on the long run.
The chart itself also showing now a clear broken major 17-year downtrendline with a confirmed short term re test. Another re test might occur- even later this year. On the long run the EuroSTOXX 50 will turn higher for 2.000 points, at least until 2024. Europe k gets more attention from investors in Southafrica. Likely more global Investors going to focus on Europe on a more positive view. If the Italian Election might not cause major damages in the EU than the EuroSTOXX50 might gain strong momentum to the upside later this year or 2019/2020.
Since beginning of 2016 Europe is showing strong fundamental data such as 8 consecutive quarters of growing GDP, record low unemployment rate and record TAX revenue surplus in Germany and record high PMI´s all over Europe. Same time most European Stockmarket Indices are far away from All Time Highs seen before 9/11, 2008´s subprime or 2011´s Euro crisis. The major reason are fears about "The Rise Of Populism" in Europe. In Dezember 2016 (Italian Constitutional Referendum), the France Election in April/May 2016, The Catalonien Crisis and now before the upcomming Italian Parliament Election the fears are traded (short) in "The Rise of Populism Trade". Expectations for the next Election in Italy in 2 month form now on are clearly negative, once more. If ever this fears are overdone than European Stockmarkets will be effected by this and will go higher on the long run.
The chart itself also showing now a clear broken major 17-year downtrendline with a confirmed short term re test. Another re test might occur- even later this year. On the long run the EuroSTOXX 50 will turn higher for 2.000 points, at least until 2024. Europe k gets more attention from investors in Southafrica. Likely more global Investors going to focus on Europe on a more positive view. If the Italian Election might not cause major damages in the EU than the EuroSTOXX50 might gain strong momentum to the upside later this year or 2019/2020.
Comment
Italy's Five Star Movement leader softens stance on euro and party alliances ahead of 2018 electionThe leader of Italy's Five Star Movement (M5S) party showed a softening in the party's stance on both political alliances with other parties and Italy's membership of the euro in comments made over the weekend.
"If we get 40 percent in the election, we can govern alone," Luigi Di Maio, who was elected as leader of the anti-establishment party in September, said in an interview with Italy's Radio Capital. "If we don't, on the evening of the election I'll make a public appeal to the other political forces that have got into parliament, presenting our programme and our team."
Opening the door to an alliance with other political parties is a turnaround for the M5S, which defines itself as anti-establishment and has long refused to take part in /20171218/italys-five-star-movement-leader-softens-stance-on-euro-and-party-alliances-ahead-of-2018-election#
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GEOPOLITICS, GERMANY, COALTIONTALKS, HEADLINE, CNBC.COMCornered Merkel upbeat as starts government talks with center-left
Chancellor Angela Merkel said on Sunday she was optimistic her conservatives and the Social Democrats (SPD) could agree to join forces
The two sides have embarked on five days of talks about reviving the 'grand coalition' that has governed Germany since 2013
cnbc.com/2018/01/07/merkel-starts-government-talks-with-center-left.html
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