Equities opened lower in Europe on Tuesday

23 May 2023

EUROPEAN STOCKS

Equities opened lower in Europe on Tuesday, extending losses registered overnight in Asia, as fear and uncertainty grow in investors’ minds. Bearish sentiment is prevailing on stocks with Treasury yields taking off as risk appetite continues to plummet amid the lack of a US debt ceiling deal, despite another full day of discussions yesterday.
Fear is growing too as the deadline for an extension of the debt ceiling is fast approaching, and the prospect of a payment default from the US becomes more and more real, which is further denting market sentiment.
Elsewhere, investors will be keeping an eye on US data today with Building Permits, PMI Services and New Home Sales all expected to show declines compared to last month.
All EU benchmarks are currently in red territory today, with all sectors down with the worst performances coming from Consumer Cyclicals, Utilities and Healthcare.
The STOXX-50 Index is now trading below its first support under 4,375pts, with 4,352pts now in sight.

Pierre Veyret, Head of French Markets & Global Asset Technical Analyst, ActivTrades