Tuesday's European Stocks: Modest Opening Gains
Stocks climbed slightly before paring some of their gains at the opening of Tuesday’s trading session in Europe, while Asian shares closed in the red, as macro data led market sentiment sideways.
The STOXX-50 index still trades inside its consolidation zone between 4,400.0pts and 4,430.0pts. Investors are experiencing patchy performances across all sectors as they struggle to reconcile positive dovish hints from ECB official Isabel Schnabel with the debt situation in China, which remains a dark cloud for equity traders.
In addition, even though US PMI and JOLTs data may increase market volatility in the afternoon, the “wait and see” stance will likely continue as investors brace for the crucial US jobs data due tomorrow and Friday.
Meanwhile, a particular focus should be maintained towards central bankers’ speeches, as traders need to check whether their dovish expectations will be confirmed.
Technically speaking, no directional price action will be expected if the market keeps trading within its 30-point wide range.
Pierre Veyret – Technical analyst, ActivTrades
The STOXX-50 index still trades inside its consolidation zone between 4,400.0pts and 4,430.0pts. Investors are experiencing patchy performances across all sectors as they struggle to reconcile positive dovish hints from ECB official Isabel Schnabel with the debt situation in China, which remains a dark cloud for equity traders.
In addition, even though US PMI and JOLTs data may increase market volatility in the afternoon, the “wait and see” stance will likely continue as investors brace for the crucial US jobs data due tomorrow and Friday.
Meanwhile, a particular focus should be maintained towards central bankers’ speeches, as traders need to check whether their dovish expectations will be confirmed.
Technically speaking, no directional price action will be expected if the market keeps trading within its 30-point wide range.
Pierre Veyret – Technical analyst, ActivTrades