European stock markets continued their consolidation on Wednesday, following an Asian trading session without clear direction. Even if global fiscal and monetary stimulus provided investors with some sort of insurance against deeper market corrections, the current busy macro environment makes short-term market predictions very difficult for traders. The current lack of market directionality is of course related to some profit taking moves but that is not the only factor. Between today’s Fed statement, the recent resurgence of the coronavirus, national data and corporate earnings, market operators have a lot to digest this week. We expect volatility levels to be on the rise at the end of the week as investors, monitoring these new data, will try to gather further evidence on where the economy is actually going.
The best performance comes from Paris as the CAC-40 Index is trading well above 4,900pts and is closing on 5,000pts. The French benchmark’s volatility is likely to rise significantly today with important companies like Unibail-Rodamco-Westfield, Sanofi, and Schneider Electric publishing their results.
