As troubles continue to mount over Europe, the European blue-chip index once again failed to hold above the 3500 area. After a failed attempt to maintain strength above 3500 area, the index has declined since last week and is currently trading at 3400 area. The blue-chip index is down around 0.7 percent today.
At this point, looking at the troubles of Eurozone,
- U.S. President Donald Trump’s trade challenge
- Additional demand for payments to NATO.
- Italy’s clash with bureaucrats in Brussels.
- Angela Merkel’s struggling attempt to maintain chancellorship amid a threat by coalition partner to quit or impose harsh immigration policy if she fails to find a common resolution to the problem.
- Uncertainties surrounding Brexit.
- Growth is slowing down, along with PMI numbers.
- Both consumers and business confidence is crashing.
We would like to urge our readers to go short on the European blue-chip index Eurostoxx50 at the current rate of 3404 with a target of 3150. The stop loss for this trade should be maintained above the recent peak of 3540 area.