Stocks were trading higher shortly after the opening bell in Europe on Monday, with Real Estate and Tech shares driving almost all benchmarks in the green, after President Biden brought some relief to investors. Today’s appetite for risk has been sparked by the US President’s announcement that trade tariffs imposed on China by the previous Trump administration will be discussed. Investors see this as a possible de-escalation of the trade war between the two economic superpowers, and this has revived trading optimism towards riskier assets. However, major bearish leverages still linger for stocks and analysts expect markets to remain extremely volatile as long as no significant progress is registered on the geopolitical, monetary/economic and virus fronts – especially after Beijing registered another record number of new covid cases.
More clues about those market drivers, especially regarding the economic outlook, may be provided this week as traders await major data such as global PMIs, US new home sales, GDP and jobless claims alongside another batch of speeches from FED, ECB and BoE speakers.
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.