European Equities Hold Steady Amid Mixed Risk Sentiment
Equities traded sideways in Europe on Monday amid mixed market sentiment towards risk ahead of a significant batch of new macro data this week.
The STOXX-50 index drifted shortly after the opening bell before bouncing back as gains in consumer non-cyclicals, industrials, and real estate shares offset losses seen in basic material and energy stocks.
Investors’ appetite for risk remains, however, fragile for two reasons.
This week’s macro agenda is busy, with most traders waiting for PMIs and ISM data from the US, UK and EU while a batch of US job data looms. Investors will also wait and see where economies are going, checking that the anticipations that drove the autumn rally were on point before adjusting their portfolio’s exposure to risk.
The second reason is technical: as previously mentioned, the market has already gone a long way up since its rebound at the end of October. With the impact on key resistance levels, investors may want to consider taking out some profit while waiting for this week’s macro developments.
Pierre Veyret – Technical analyst, ActivTrades
The STOXX-50 index drifted shortly after the opening bell before bouncing back as gains in consumer non-cyclicals, industrials, and real estate shares offset losses seen in basic material and energy stocks.
Investors’ appetite for risk remains, however, fragile for two reasons.
This week’s macro agenda is busy, with most traders waiting for PMIs and ISM data from the US, UK and EU while a batch of US job data looms. Investors will also wait and see where economies are going, checking that the anticipations that drove the autumn rally were on point before adjusting their portfolio’s exposure to risk.
The second reason is technical: as previously mentioned, the market has already gone a long way up since its rebound at the end of October. With the impact on key resistance levels, investors may want to consider taking out some profit while waiting for this week’s macro developments.
Pierre Veyret – Technical analyst, ActivTrades