European stocks edged slightly higher on Wednesday, boosted by easing UK-EU tensions, with transaction volumes falling as we get closer to the end of the year. Investors continue to drive stocks higher, aiming to offset and fill the bearish gap left open at the beginning of the week, while market sentiment has received a fresh boost from a resolution being found on the trade and transport impasse between France and the UK.
In addition, investors seem to particularly appreciate the last effort being made by British and European negotiators on a “final push” for a Brexit deal. Even if no strong directional market movement is expected before 2021, the bullish scenario remains the most likely as bullish leverages remain stronger than bearish ones. Investors’ focus will be trained on the travel and leisure sector and energy shares with the EIA crude oil inventory report due later today. Moreover, US jobless claims, durables and personal income data from the US may also increase short-term market volatility.