European benchmarks opened higher on Monday despite a mixed trading session in Asia as Chinese markets re-opened. Today’s market sentiment remains fragile despite the cash injection from China into its financial system in order to sustain the economy and mitigate negative impacts of the Coronavirus. Tech and Travel shares are among the best performers in Europe today, offsetting losses registered by Miners for the beginning of the week. Even if most EU benchmarks trade slightly higher today, markets still lack directionality and will need to clear significant upward price levels in order to pave the way for a solid recovery.
Elsewhere in Europe, the FTSE-100 index opened higher today as a mechanical effect of Sterling’s drop following indications from UK PM Johnson who said there was “no need” for the UK to accept various EU rules in trade deal. The market is now trading above 7,300 but will have to clear the 7,320 level in order to trigger the possibility of reaching 7,335 and 7,385 by extension. Investors may also want to pay attention to US manufacturing data for January due later today, where an increase is expected by economists.
