European shares slid slower alongside US futures, despite modest gains registered by Asian equities overnight. While Asian stock investors welcomed the fact that the US administration is to lift China’s currency manipulator status ahead of the highly anticipated Phase One trade deal signing, European and American traders don’t expect a huge impact on most markets as the news was already largely priced-in. Investors in Europe and in the US have instead preferred to focus on this week’s earnings reports with financial giants like JPMorgan Chase & Co, Morgan Stanley and Blackrock kicking-off the season.
In Europe, the Stoxx-600 Index is trading lower than yesterday with banks and chemicals shares registering the steepest declines. Markets are likely to see higher volatility today as many traders await the US inflation data for December, which will certainly provide investors with more clues towards the path the US economy is taking. In Europe, the worst performer is Spain’s IBEX-35 Index. The market is still inside its medium-term bullish channel with 9,460pts a major support for prices. The 21-period moving average is reversing and is now playing a resistance role with an extended corrective move could send prices towards 9,300pts on a short-term basis.
