Most European shares declined shortly after the opening bell before recovering minutes after. This volatile open in Europe is underlining investors’ state of uncertainty. The signing of the initial US-China trade deal hasn’t really impacted market sentiment, despite the expectation of the agreement having driven stock markets up almost everywhere in the globe for the past few months. Instead investors are preferring to stay cautious as there remains a wide distance between the two countries before Phase Two can be agreed. China needs more time before entering further talks with Washington as the nation must assess the effect of the Phase One deal first. In investors’ minds, this second round of negotiations is likely to set the pace on stocks and other risky assets for the first part of 2020 at least.
So far, the Stoxx-50 Index is edging slightly higher with carmakers the worst performer despite solid data in December. The DAX-30 Index is flying a bullish flag which could unlock further upward potential towards 13,500pts and 13,585pts by extension. The OMX-30 in Stockholm is also performing strongly so far with prices trading above 1,800pts.
