European shares opened lower in Europe in this last trading session of the week as markets still struggle to recover from Monday’s drop. Investors lack a clear view on stock markets as concerns linger that Beijing may proceed with further currency devaluations, making the market sentiment very uncertain for the end of the week.
In Europe, traders have also been concerned by the political situation in Italy after Matteo Salvini called for fresh elections as a clear majority no longer exist to support the Government. Banking and Automakers are leading the decline on European stocks. The Stoxx-50 index faces a strong resistance level at 3,360.0pts while the DAX-30 index is struggling to clear the 11,840.0pts level even after BAYER shares rose by 11% after an $8 billion proposed roundup settlement. Investors’ focus is likely to turn to the U.S. later in the day as everybody awaits the American Producer Price release for July in the afternoon.