Market Analysis

Decreased volatility for EU benchmarks and US Futures


European shares opened mostly lower on Tuesday, extending the Asian trend, as geopolitical tensions and monetary policies continue to weigh on global market sentiment. That said, both volatility and market directionality have decreased on EU benchmarks and US Futures following yesterday’s strong bullish reaction sparked in the second part of the US trading session. Bull traders seized the occasion of more attractive prices brought by the sell-off, to take back control of the market, at least temporarily. No spikes or unusual price behaviour has been registered on Treasuries, which tends to indicate the strong sell-off on stocks was just a correction. However, even if some investors consider the current bottom as a “buy the dip” opportunity, most of them aren’t very optimistic on the mid-term view. Many expect more challenges and increased volatility for riskier assets deeper in Q1 and into Q2 this year. Today’s market sentiment is likely to be driven by US CB consumer index data as well as corporates results from 3M Co, General Electric, Johnson & Johnson, and others.

Source: ActivTrader


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