European share markets started the week on a mixed note as the “wait and see” trading stance continues ahead of a busy week. Stimulus measures and the US-Sino relationship remain the biggest market drivers at the moment and investors were slightly disappointed to see trade talks between Washington and Beijing, initially planned for this week, have been postponed. Wednesday is likely to be the most volatile day of the week as traders patiently wait for the Fed’s minutes of its last meeting in order to predict the next move from the central bank. Further downside risks in the near term may increase if these minutes prove disappointing as many investors have already anticipated further stimulus measures. Elsewhere traders will also keep a close eye on oil markets and energy shares this week as the next OPEC meeting looms on Wednesday and, depending on the tone and discussion, could lead to volatility spikes on energy-related sectors.
European markets remain neutral so far, with losses in utilities offset by gains in the IT sector. The Stoxx-50 Index is still trading sideways in the middle of its 3,100-3,400pts trading range.
