Stocks opened slightly higher in most European markets on Thursday, retracing some of yesterday’s losses while market sentiment remains mixed and directionless on a very short-term basis. Even if most bullish trends remain valid on European benchmarks so far, especially on the DAX-30 Index, lingering concerns over the uncertainty on the timing of the next US stimulus package combined with simmering US-Sino tensions is making stocks a less attractive asset class.
While investors welcomed recent progress made by healthcare companies in the struggle against the pandemic (Pfizer Inc. +8%), most of them are becoming increasingly worried that the relationship between Washington and Beijing will worsen prior to the US election in November and put further pressure on riskier assets. Having said that, it is no surprise to see safe havens, like precious metals, surging as investors may want to hedge themselves against potential downside risks by diversifying their exposure after a long rally.
Pierre Veyret– Technical analyst, ActivTrades
Disclaimer: opinions are personal to the authors and do not reflect the opinions of LeapRate. This is not a trading advice.
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