Stocks opened higher everywhere in Europe on Tuesday, extending the gains at the end of yesterday’s trading session by US equities. This change in sentiment was triggered by investors noticing good signs on the virus front from California, ahead of the reopening of the state next Friday. Spain, France and Hong Kong are among the latest areas to be easing lockdown measures soon, with investors eagerly awaiting the impact these changes have in turning around the existing economic data that is already outdated. Traders are likely to retain a defensive trading stance on riskier assets before more clues emerge on how economies are coping with opening back up again. In the meantime, the earning season continues today with Q1 results expected from large caps like BNP Paribas and BMW. In addition, investors will also be interested to see how the travel and leisure sector has been impacted with results from Walt Disney and Air-France KLM due later today.
The DAX-30 is one of the top movers in Europe today, trading just below 10,700pts. The market is challenging the upper band of its bullish channel in an attempt to fill the bearish gap left open at the beginning of the week. Upcoming targets are at 10,740pts (38.2% Fibonacci) and 10,855pts (50% Fibonacci).
