EUROPEAN SHARES
Stock benchmarks opened higher in Europe on Monday, alongside US futures contracts, with investors cheering on reassuring macro developments over the weekend.
Market sentiment strengthened at the beginning of another busy week after US lawmakers passed legislation that temporarily averted the government funding crisis. While this good news has positively impacted investors’ trading outlook, this mood will likely be short-lived as it doesn’t solve the long-term debt issue in Washington. With this legislation, the government is insured to keep running until mid-November, providing another short-term wind of relief for traders.
Elsewhere, negative news from China is also taking a break after the nation entered a 6-day bank holiday, providing investors with another window of calm before the storm resumes. Meanwhile, risk continues to rise slowly globally as treasuries keep trading lower. At the same time, stock traders are braced for another weekly agenda full of key macro developments, starting today with the US ISM Manufacturing PMI alongside speeches from Fed chairman Jerome Powell, while decisions on rates from the RBA, the RBNZ and another batch of key US data, including the highly awaited NFP report loom later this week.
Pierre Veyret– Technical analyst, ActivTrades
Source: ActivTrader
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