Shares are edging higher in Europe following gains registered overnight in Asia as market sentiment seems to be back on track this week. Investor appetite towards stocks has been recently boosted by potential trade developments next week after Washington confirmed a visit for a first face to face meeting since the last G20 in Osaka.
In addition, investors have also welcomed the deal reached between President Trump and Congress that will extend the debt limit and 2-year budget. However, volatility is poised to rise with several large companies from different sectors reporting their results today.
Also, later today, the EU Consumer Confidence and the US Richmond FED Index will be released. This data is likely to have a significant impact on currencies and, mechanically, on stocks as well. For now, the Stoxx-50 index continues to flirt with the 3,500.0pts level while the DAX-30 index is registering the best European performance. However, the German index currently faces a strong technical resistance zone located between 12,380.0pts and 12,400.0pts which should contain the market for the rest of the day.
Photo by Willian Iven.