European markets slid slightly lower despite a bullish opening
European markets slid slightly lower despite a bullish opening following a strong trading session in Asia overnight. Investors remained on a “wait and see” trading stance ahead of another busy week where key US data and earning reports are due. Most benchmarks remain inside their consolidation zone, with losses from the banking sector being offset by gains in cyclical values with little volatility. While the new earning season will certainly provide investors with more clues of how profitability is matching with stretched valuations, especially in the tech sector, traders are also patiently waiting for more hints from the ECB regarding the future of its stimulus program. That said, volatility spikes may shake stock markets this week but no directional mid- to long-term price action should be expected before any significant development on the macro front.
Pierre Veyret– Technical analyst, ActivTrades
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