Stocks slid slightly lower in the old continent on Wednesday, following the trend set overnight in Asia, as a risk-off trading stance is emerging amid growing uncertainty. Even if most stock indices achieved fresh highs this week, boosted by the agreement on the EU recovery package, market sentiment is becoming increasingly weighed down by the battle between Republicans and Democrats over a similar deal in the US.
Today’s aversion to riskier assets is also motivated by mounting concerns over coronavirus, especially after Brazil and Australia reported record virus cases yesterday, almost offsetting this week’s positive development on a potential vaccine. Both market volatility and directionality are lower than the beginning of the week with investors waiting for today’s corporate results (Microsoft, Tesla) as well as the Crude Oil inventory report from the EIA to adjust their exposure to certain sectors and give benchmarks a clearer direction.
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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