European indices had a mixed opening mixed on Monday, with the energy and financial sectors weighing on most benchmarks as traders brace for another busy week. While the direction of European stocks remains uncertain this week, market volatility is likely to be on the rise. Indeed, most investors are patiently monitoring the discussions between EU leaders about an additional €750 billion recovery package. Even if these renewed stimulus measures may not be fully priced in yet, market operators remain quite confident about it, making new highs possible for EU markets later this week. In addition, investors’ trading decisions will also be influenced by a new batch of corporate earnings this week with reports from Blackstone Group, Microsoft, UBS and Unilever looming.
However, further downside pressure may also be felt on global stock markets this week as coronavirus cases continue to rise and the likelihood of renewed lockdowns in many areas remains a concern.
