European shares continued their slide on Tuesday, following drops on US futures overnight. Investors continue to assess the possible impact of more and more restrictions on economies and prefer to limit their exposure to riskier assets due to rising uncertainty. This is especially true in Europe where French President Macron is now expected to announce an extended curfew as well as new social interaction limitations, following recent measures from both Italy and Spain.
Furthermore, the uncertainty brought by the upcoming US Presidential election combined with disappointment over the lack of a new fiscal aid package keeps on denting investors’ risk appetite in the short-term. If this situation remains, investors are likely to increase their trading exposure towards safe havens like JPY, USD or even treasuries while equities will continue their bearish correction. Today’s session will be marked by US data with both Durable Goods Orders as well as the anticipated CB Consumer Confidence. On the corporate front, traders will be awaiting results from HSBC, Merck & Co., Microsoft, Pfizer and 3M due later today.
