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.
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk.