Shares drifted lower at the beginning of the European trading session on Tuesday as market sentiment remains weighed down by increasing uncertainty, despite encouraging Chinese data overnight. Investors’ risk appetite is on hold today following delays and difficulties in the development of a vaccine from Johnson & Johnson, while infection numbers keep on increasing everywhere.
In addition, stock traders are becoming ever more disappointed by the failure of the US administration to deliver a new deal on further stimulus measures and must deal with the uncertainty of the upcoming presidential election. Having said that, and after yesterday’s rally on techs, many investors may choose to temper their exposure to stay on the “safe side” ahead of the earning season and its usual higher market volatility. With this in mind, investors’ attention will be focused on the financial sector with Citigroup, JPM and Blackrock all publishing their results today. There is unlikely to be any significant sell-off today as tech stocks are likely to offset any losses in the travel and leisure sector triggered by vaccine delays.
