European markets opened higher on Monday, continuing the trend registered overnight in Tokyo, Hong-Kong and Seoul as investors welcomed the latest encouraging data from China. While Beijing’s economic recovery seems to be well underway, tensions with Washington continue to grow after the US issued another export restriction on China’s largest chipmaker. Monday morning’s rally on stocks is likely to be short-lived as investors will face more uncertainty and volatility from this week’s busy agenda. Today starts the final round of EU-UK Brexit talks while tomorrow brings the first Trump-Biden presidential debate ahead of the election in November. Wednesday sees the release of further important data from China as well as global crude oil inventories while the last US non-farm payroll before the presidential election looms on Friday. In the meantime, the ongoing battle between US Democrats and Republicans for a new stimulus package before November is likely to keep investors cautious with their trading this week, making most markets volatile but lacking a clear direction.
Technically speaking, the Stoxx-50 Index is registering a rebound on the strong support level at 3,145pts but crucially it needs to clear the zone at 3,222-3,240pts zone for an extended rally up to 3,300pts and beyond.
