European markets flashed green thanks to encouraging data from Europe while tech shares led a rebound on Wallstreet.
Treasury Secretary Janet Yellen rattled financial markets yesterday by suggesting that interest rates may need to rise to prevent the US economy from overheating. The negative reaction witnessed across the equity space laid bare the market sensitivity to inflation expectations. Interestingly, Yellen later clarified that she was not forecasting interest rate hikes – which came as a breath of fresh air to the Technology sector. The Nasdaq 100 has gained over 0.6% this afternoon, while the S%P 500 and Dow Jones have both gained almost 0.5%.
Looking at the technical charts, the Nasdaq turned bearish on the daily timeframe after securing a solid daily close below the 13750 support. If this level transforms into a dynamic resistance, the index could decline towards 13350 – a level just above the 50-day Simple Moving Average….