European shares had a mixed opening for the last trading session of the week following small losses in Asia overnight. Most European share markets are trading around their neutral zone as investors hesitate to extend yesterday’s gains ahead of today’s highly expected US job report. In these uncertain times, investors will hold on and switch their focus to data due out today such as US non-farm payrolls to get more clues on the damage the Covid-19 has done to the economy so far. However, it is still hard to assess what is already priced in the markets. Sharp price action and a surge in volatility are to be expected in the afternoon as many investors will be tempted to adjust their exposure following the release of US data and prior to a busy weekend.
Insurers and energy shares weigh on European markets today with the Stoxx-50 Index still drifting within the 2650pts-2,700pts range. The market remains well capped by the resistance level at 2,720pts, which is placed inside its bearish gap zone, while the price is also supported by an important technical level above 2,634pts. A break-out of one of these zones would open the doors to a much clearer directional movement.
