European shares opened with a firmly bullish tone on Tuesday after investors welcomed the validation of the US spending bill as well as progress on the Brexit talks. Yesterday’s dent to market sentiment that was brought by worries of a new virus strain over the weekend are now being offset, on a very short-term basis at least. Even if the US relief package was already widely priced-in, most investors were finally happy to see it validated. In addition, most traders also welcomed the fact Boris Johnson made another proposal to the EU in an attempt to secure a last-minute deal, confirming his will to ensure the economic future of both regions. We have now entered the two last weeks of the year and there is a high chance that positive news will keep on being exacerbated by investors, as they will try to push stock prices higher before the curtain falls on 2020. Investors will keep a close eye on today’s US GDP release prior to tomorrow’s jobless claims data for November which could bring increased market volatility right before Christmas.
The Stoxx-50 Index is now flirting with 3,500pts, the entry point of the bearish gap registered yesterday. Further on, 3,525pts and 3,570pts remain as major targets for the market.
