European stock market indices trade higher for another day in a row. This comes in spite of a rather mixed Wall Street session yesterday and a mixed trading during the Asian session today. There is no clear reason behind the move but ECB consumer survey for January may play a role. Survey suggested that consumer inflation expectations for the next 12-months dropped from 5.0 to 4.9% while three-year expectations dropped from 3.0 to 2.5%. Moreover, growth in nominal income over the next 12 months is seen at 1.3%, up from 1.0% seen in December. This suggests that ECB could have room to be less hawkish. Nevertheless, this stands in contrast to recent comments from ECB members themselves, like for example Holzmann, who sees need for 4 more 50 bp rate hikes.
Taking a look at DE30 chart at D1 interval, we can see that the index moved above a recent trading range and is making a break above the local high from early-February in the 15,700 pts area. A quick and clear break above the 15,700 pts handle may pave the way for extension of the upward impulse, and a move towards all-time highs in the 16,300 pts area.
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Source: xStation5
