European stocks keep on consolidating as benchmarks opened mixed in the region. This neutral market sentiment is in place as most investors await fresh news from the highly anticipated US-China “phase one” deal. In addition, traders are still gauging the effects the situation in Hong-Kong could have on the negotiation between the two blocs as most operators fear that a firmer position from China could interfere in trade talks with the US.
Furthermore, the current market corrections can also be explained by growing fear of a slowdown in negotiations following mixed signals from Washington (tariffs cancellation) as well as multiple delays towards the next formal meeting with Beijing. While waiting for trade developments, investors who have already anticipated the “phase one” deal may switch their focus back to data this week with both US and China Retail Sales in sight (Thursday and Friday).
Photo by Daniele Levis Pelusi.
