Daily market commentary: All European benchmarks are trading higher

European Shares

All European benchmarks were trading higher following the opening bell on Monday, an optimistic sentiment broadly shared as both Asian and US markets have also edged significantly higher, extending gains registered at the end of last week.

The US dollar declined while bond markets remained stable, indicating the end – at least temporarily – of the fear trading stance seen through last week. This renewed appetite for risk started last Friday after investors digested the latest strong retail sales data in the US. However, the biggest jump in market sentiment has certainly been brought by rumours the ECB will unveil a new unlimited bond-buying program to help markets cope with the coming new cycle of monetary tightening on the old continent. Of course, this is having a huge impact on investors who are relieved at seeing the ECB continuing to support the markets artificially, as most market operators had doubts until now about how the economy could handle a new cycle of monetary tightening.

Daily Market Commentary

That said, traders will be patiently waiting for more information from the ECB and are likely to keep their focus towards data, with this week’s new batch of corporate results from Bank of America, Goldman Sachs and Tesla.

Pierre Veyret– Technical analyst, ActivTrades


Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.

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