European shares had a mixed opening on Wednesday with most benchmarks fluctuating, albeit on low volumes. This toneless European trading mood comes after the IMF downgraded the region’s growth outlook amid delays to the vaccine rollout in many areas, which is weighing on today’s market sentiment. In addition, most traders are also in “wait and see” mode, bracing for today’s FOMC press conference and its decision on rates. More dovish measures are widely expected to sustain and protect markets against downside risks. Moreover, tech stock traders are also anticipating increased market volatility later in the afternoon as the giants of Apple, Facebook and Tesla are all set to publish their earnings.
Meanwhile, most European benchmarks remain inside their consolidation pattern, trading above strong short-term support levels, just like a sprinter in the starting blocks. The DAX-30 Index is still trading above 13,800pts with the zone between 13,940-13,990pts the main upward target on a very short-term basis.