European benchmarks edged higher on Monday, following the trend of the third week of December traditionally proving a bullish one, as investors welcomed macro news. Most markets are now back on track to record fresh highs before year-end after investors welcomed vaccine deployments with this positive news offsetting any negativity about renewed lockdown looming in places like Germany. In addition, the risk-on sentiment is also being carried by positive talks on both the $908 billion US relief package as well as the extension to Brexit discussions in Europe, confirming UK-EU leaders’ will to avoid the “no-deal” situation. However, even if the risk-on trading stance is alive and well today, most investors will be cautiously monitoring tomorrow’s data from China (Industrial Production and Retail Sales) which should provide them with more clues about the true state of the world economy. Furthermore, investors are also bracing for a busy week on the monetary side as central banks from Mexico, Switzerland, Japan, Russia, and the Fed in the US are all set to announce updates on their monetary policies.
The FTSE-100 Index in London is one of the only benchmarks flirting with the red territory after stock prices have been impacted by sterling gaining strength. The index remains well set above 6,530pts with the target of 6,775pts still in sight.