European markets edged higher on Monday, following a mixed trading session in Asia where shares erased last week’s losses in China but tumbled in Tokyo. All the European benchmarks followed the trend set overnight by Chinese shares after the nation unveiled a new set of measures in the fight against the coronavirus. These new measures included increasing financial flexibility across the country after the central bank lower rates and the government planned to cut corporate taxes and fees. This news was very well received by investors who are already bracing for an extended rally on the back of a quick recovery of the Chinese economy allied to these stimulus measures and this could present a real upside risk for markets.
In addition, traders also welcomed the fact that the number of new daily cases of coronavirus is trending lower. This positive sentiment comes on what is likely to be a quiet trading day in the US with markets shut for Presidents Day. Most sectors of the Stoxx-50 Index are trading higher today with the Index continuing to flirt with its record high. Prices are now heading to 3,860pts following two rebounds on both 3,800pts and 3,830pts. These moves confirmed bull traders have the upper hand currently.
