David Fuller's view

DJ Euro STOXX 50 is poised to break up out of its trading range which dates back to 4Q 2013. Industrial heavyweight Germany has led during the last two days and The Netherlands is close behind.  France is now testing its June 2014 high.  Sweden and Denmark have broken upwards from similar patterns.  However, there is a short-term risk with Denmark which is not a member of the Euro although the Danish Krone is pegged to the single currency.  Denmark has widened its negative interest rates twice this week to offset inflows by people who are hoping that it will be forced to uncouple the rate, as we recently saw with Switzerland.  This is possible, although it would be a less dramatic move.