FTSE 100, DAX, CAC 40 on green mood; IBEX 35 slightly in red

Today's trading session has ended on positive tone for European indexes as the FTSE 100 trading at 7108.50, up +0.13% on the day, having posted a daily high at 7170.24 and low at 7099.15. Later the IBEX 35 trading at 9313.90, down -0.01% having posted a daily high at 9304.50 and low at 9423.30, then the DAX trading at 11660.06, up +1.08% having posted a daily high at 11723.39 and low at 11622.60, and finally the CAC 40 trading at 4795.16, up +0.97% on the day, having posted a daily high at 4782.61 and low at 4823.81.

Industrials lead the way; Strong euro zone manufacturing data
Reuters reports, "European shares were firmly up on Wednesday after three days of losses, with basic resources and industrials leading, boosted by healthy corporate results and positive manufacturing data out of regional heavyweights France, Germany, and Italy. French manufacturing activity expanded at the fastest pace in nearly six years in January as demand firmed up, while German factory growth was the highest in three years, and Italy's also increased, albeit at a slower pace. "Buoyed by the prospects of a reflationary US economic policy under President Trump, it looks like manufacturers are ramping up activity," said Neil Wilson of ETX Capital, in a note."

The report continues, "Volvo shares were the top European gainers, up 6.4 percent after the company substantially outperformed forecasts with a core profit of 5.66 billion Swedish crowns, and raised its forecast for the European truck market. Volvo's strength could also have been supported by Sweden's manufacturing sector growth, the fastest in six years. Shares in Siemens hit their highest level since September 2000, after it raised its outlook, with industrial business profit jumping in the fiscal first quarter."

EU awaits new U.S. interlocutors; EU banks to take major hit
Bloomberg reports, "A revamp of global bank capital standards is on hold during the change of administration in Washington, with U.S. and the European Union negotiators locked in a “fundamental disagreement” over how to stop banks gaming the rules, according to a senior EU official."

"Talks in the Basel Committee on Banking Supervision have bogged down, with no fresh compromise on the table for how to stop banks using their own complex models to reduce their capital requirements, four people familiar with the matter said last month. The U.S. insists on tough curbs, while the EU, whose major banks would take the biggest hit under the new rules, is pushing a softer line," the report concluded.

FTSE 100 Technical levels to consider

In terms of technical levels, upside barriers are aligned at 7169 (high Feb.1), then at 7260 (horizontal resistance) and above that at 7354 (high Jan.16). While supports are aligned at 7035 (50-DMA), later at 6964 (100-DMA) and below that at 6835 (horizontal support). On the other hand, Stochastic Oscillator (5,3,3) seems to head south after a short-lived pullback, therefore, there is evidence to expect further Equity losses in the near term. 

Markets - Get ready for a surprise!