Asian benchmarks drifted sideways overnight and European stocks had a mixed open this morning. Markets remain steady for the last trading day of the month as the Donald Trump – Xi Jinping meeting in Osaka looms. This trading session is likely to be volatile but directionless ahead of this key U.S.–China meeting on Saturday. While almost nobody expects a deal to be signed this weekend, most investors are expecting some productive talks which could set the pace for the equity markets for the second half of 2019. This morning risk sentiment was also boosted slightly by Trump’s announcement of a “very big trade deal” to come with India.
Photo by Chris Liverani.
The Stoxx-50 index is trading sideways between 3,340.0pts and 3,327.0pts while the DAX-30 index is registering the best performance of the table with prices trying to clear the psychologic level of 12,300.0pts. The technical situation on the SMI-20 in Geneva is however more concerning as prices have broken-out the major 9,805.0pts / 9,810.0pts support zone. 10 out of the 20 Swiss-listed equities are trading lower with SGS SA and CREDIT SUISSE registering the worst performances so far while SIKA AG and GEBERIT AG are at the top. If the market breaks out the 9,800.0pts level, then a new bearish potential to 9,755.0pts will be unlocked.