Stocks opened mixed in Europe today, following a rout on Asian shares overnight. Investors’ risk sentiment has been smashed after last Friday’s much better than expected US job report. The latest strong data has seen the last disappointing report in May recast as an anomaly. All eyes are now back on Federal Reserve chairman Jerome Powell, who will speak before the US Congress on Wednesday, as previous anticipations of a 0.5-point rate cut now look very unlikely.
Elsewhere, stock prices may also be impacted by developments in oil markets where geopolitical tensions have risen once again after Tehran threatened to breach uranium enrichment levels amid rising political tensions with the US.
An important week also begins in the UK as Conservative party members prepare to elect a new leader. Boris Johnson remains the front runner, but this could change with a television debate with the other candidate, Jeremy Hunt, scheduled for early this week.
The Footsie-100 is one of the only European indices to trade higher today, with prices evolving towards the 7,500pts level. The market will however have to clear the 7,510pts level to unlock a potential rally extension to 7,535 pts today.
Photo by Dylan Nolte.
Another good performance is being registered by the DAX-30 index after the market rebounded over 12,480 pts. Prices are now trying to close the bearish gap opened on Friday, the 12,565pts level should represent an interesting resistance for the market. Stocks are also mixed in Geneva as the SMI-20 trades sideways between 9,960 pts and 9,940 pts. Top movers are financials with UBS Group and Credit Suisse Group with the best performances while Roche Holding stays at the bottom of the table
