Investors are torn between hopes of additional monetary aid and a deteriorating pandemic. This lack of clarity on the short to mid-term prospects usually leads to market consolidation. With that in mind, market operators are likely to keep their focus on macro data as well as corporate earnings. Traders will then cautiously listen to ECB President Christine Lagarde later in the afternoon to get more hints on what to expect in terms of policy. In addition, stock investors are also bracing for this week’s slew of earning reports across many sectors but with a special attention on results from US tech giants.
The best European performance comes from the Italian FTSE MIB 40 where prices continue to flirt with the crucial 22,175pts zone. A break-out here would unlock new upward targets around 22,380pts and 22,800pts while a failure to clear this level would raise the possibility of a deeper correction towards the 21,515-21,660pts zone.