Even though the sales on Wednesday and Thursday did not show any major changes, we still observe the overall ascending dynamics on larger time frames, suggesting the buyers’ advantage. Moreover, on Thursday we observed sustainable growth in Zalando SE, Covestro AG, PADDY PLC EO-09 and Philips Electronics N.V.

This also confirms that the observed decline in the key European fund indices is a technical correction, rather than a change of the trend. Even though the risk of a stronger correctional decline remains elevated, globally the market is bullish. This is based upon the expectations on the softening of the Fed and ECB monetary policy with an overall inflation slow down in the background.

Last week leaders and outsiders:

DAX:

Top: Zalando SE +4.13%, Covestro AG +2.21%, RWE AG St +1.76%

Flop: Continental AG -2.78%, Porsche AG Vz -2.3%, Deutsche Börse AG -1.69%

EURO STOXX 50:

Top: PADDY POWER PLC +2.07%, Philips Electronics N.V. +2.04%, Banco Santander S.A +1.85%

Flop: Adyen -2.46%, STELLANTIS NV -1.3%, Deutsche Telekom AG -1.16%

Also take into consideration the absence of clear outsiders. We do not observe considerable losses in the DAX and EURO STOXX 50 securities. This is a piece of good news for the long term buyers.

Bond market:

After a long term decline in the 10 year yields profitability in Germany and France, we see moderate growth. But as it was with the key fund indices, these changes are minor.

Considering the above one can suggest that the investors are starting to hedge their risks waiting for the Fed vote on the key percent rate. The vote will take place on the 1^st of February, during the American session.

Oil market

A splash of trading activity on the oil market is based upon the appearance of multidirectional factors. However, we still get more of the bullish fundamental factors. Firstly, the China’s recovery after taking down some of the COVID restrictions is followed by an increase in the internal demand. Secondly, the prospects of a directional change of the US Fed relieve some tension. Shall the key rate seize growing; this would be yet another bullish factor for the fund market. An increase in the business activity is always followed by an increase in the oil demand. Thirdly, a moderate greenback softening also relieves some stress from the oil.

But still with the existence of such an amount of bullish fundamental factors, the aggressive purchases remain in high trading risk. One should still expect some surprises as the Fed vote results are made public.