European stocks hit highest level in three weeks

European equities reached a three-week peak due to several positive factors. Cooling inflation indicators, favourable earnings results from H&M, and a decrease in concerns regarding the global banking sector contributed to the stock rally, mirroring a similar trend in Wall Street overnight. The Dax 40 is presently up by approximately 1.40%, and the release of German inflation figures could contribute to further price movement. Following a decline in Spanish inflation during March, analysts are anticipating a similar trend in German data.

The European stock index has made a solid recovery since hitting a low in March, with prices rising above the 50-day moving average (MA). The recent surge has enabled buyers to overcome psychological resistance at 15500, with the next level of technical resistance now at the monthly high of 15720. H&M (HMb.ST) climbed 12.7% after the world's second-biggest fashion retailer reported a surprise operating profit for the December-February period.

The rapid rebound indicates a shift in sentiment since the recent banking crisis, and the CCI (commodity channel index) is now on the brink of entering oversold territory.