Risk-on sentiment in equity markets is pushing indices higher with the benchmark US S&P 500 poised for a test of the 2,800 level that has reined in prices for some time now.
"The next week will be critical for US shares," says Saxo Bank Head of Equity Strategy Peter Garnry, with Saxo technical analyst Kim Cramer Larsson cautioning that yesterday's session saw sellers move in with some determination on a prelimary test of this level.
In Europe, Garnry reports that buyers are returning to Italy as the two-year yield retreats and on recent comments from new finance minister Giovanni Tria supporting both the euro and debt-reduction efforts.
"[Tria] sounded very German in his latest remarks – I could easily see Italian shares post a 5% gain from here," says Garnry.
Italian shares ranked according to Saxo's Equity radar model: