European shares traded steady on Monday following a quiet weekend. Uncertainty is weighing heavily on risky assets as investors are still digesting the latest geopolitical developments between the US and Iran, as well as Friday’s disappointing job report. Many traders are also bracing for a busy week, with much higher market volatility in sight. Important economic data across the world, the signing of the US and China’s phase-one trade deal as well as the beginning of the earning season are likely to set the pace for financial markets this week.
Investors are closely monitoring their charts as many European indices are currently trading close to strong psychological and technical resistance levels, waiting for either a break-out or a deeper market correction. So far, the Stoxx-600 Index is trading sideways with Mining shares offsetting gains in the Tech sector. The best performer is the UK’s main index, the FTSE-100 in London, which is benefitting from Sterling’s decline. The market is challenging its first available resistance towards 7,630pts where a break-out could lead prices to 7,675pts, if the pressure continues the British currency.
