EUROPEAN AND U.S. GAP

Yesterday US indices closed mostly lower, but the European stock markets performed really well.

• Dow: +0,06% - NASDAQ -0,55% - S&P 500 - 0,06%
• FTSE +0,66% - DAX +1,25% - CAC40 +1% - MIB +1,89% - IBEX +1,23%

As we anticipated Wednesday in our blog we are expecting more gains in European markets in the following weeks than in US. The news from Ukraine lifted up higher the European markets across the board. The European benchmarks rallied Wednesday after Russian President Vladimir Putin and Ukrainian President Petro Poroshenko had agreed to the outlines of a cease-fire between Ukrainian forces and pro-Russian rebels fighting in eastern Ukraine.

The German DAX is up for four straight day, but there is still room for more gains to reach first the previous July top, now is off its record by 4%. If you get rid of this day-to-day noise, you're looking at a pretty decent outlook for the stock markets in Europe generally. Maybe today more good news will come in Europe, at the ECB meeting Mr. Draghi would take steps to stimulate the economy in the euro region.

Just to pick up one index from Europe, the CAC40 has a great upside rally opportunity. Yesterday CAC40 crossed and closed above the 4,400 key resistance level, so now the way is clear up to the previous record of 4,600, which might be reached in September.

The BFM Assets Team.