European stocks opened lower for the last trading session of the week after mixed data from China overnight put pressure on market sentiment. As a trade deal between Washington and Beijing now has a good chance of being signed next month, investors have switched their focus back to data. Even though both industrial output and retail sales have increased in China, investors were very disappointed by GDP at 6.0% (prev. 6.2%), its slowest pace since the early 1990’s. Having said that, investors are probably choosing to take some profits today, after a week of gains, and limit their exposure to EU stocks ahead of a busy weekend with a potential Brexit deal to be approved by the UK Parliament this Saturday.
The FTSE-100 Index is in a very short-term bearish channel and found strong support from bulls above the 7,155pts zone. A breakout below this level could potentially lead prices towards 7,125pts and 7,090pts by extension even if it is not a likely scenario ahead of tomorrow’s vote.
