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Daily market commentary: Stocks are trading slightly higher at the beginning of the European session on Monday



GOLD

Gold remains steady at $1,930 with investors now in a wait and see phase. The massive decisions by central banks over the last few months seems now to have been priced in by markets, while financial market operators are now checking the evolution of the virus and politicians’ responses to it. As mentioned last week, we are in a large lateral trading range between $1,870 and $2,070 and only a clear break out of one of those levels will open space for further directional movements. For the time being gold can take a break and recover its breath after the long rally of the last few months.

Carlo Alberto De Casa – Chief analyst, ActivTrades

daily market analysis

EUROPEAN SHARES 

Stocks are trading slightly higher at the beginning of the European session on Monday with benchmarks stabilizing following last week’s sell-off. While uncertainty remains over mounting job risks as well as drying stimulus, many investors seem to be speculating that the European economy could be more resilient than other economic areas. These hopes are mostly driven by the expectation of a positive ECB meeting later this week as traders await a renewed dovish tone and stimulus measures from Christine Lagarde. Meanwhile investors will be cautiously monitoring any price moves on UK stocks as a new “face-to-face” round of Brexit negotiation starts with the EU, which is already affecting Forex markets. Market sentiment remains positive but fragile at the start of this week, while lower volumes due to the absence of US traders (Labor Day) make it unlikely for there to be strong directional movements today.

Pierre Veyret– Technical analyst, ActivTrades

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Daily market commentary: Stocks are trading slightly higher at the beginning of the European session on Monday

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