European stocks opened mixed today, paring part of yesterday’s gains after economic data disappointed investors. Market appetite for riskier asset had been boosted following President Trump’s decision to delay the 10% tariff hike on the remaining $300bn of Chinese goods coming to US, a very unexpected decision in an uncertain climate on the financial markets. Beijing also confirmed talks were still on track with Washington after a “productive call” took place between the two blocs, confirming their willingness to stick to the September talks. However, investors remain very concerned by the negative effects this trade dispute is having around the globe as more and more poor economic data piles up: Chinese Industrial Production and Retail Sales disappointed traders while Germany showed a GDP contraction (-0.1%).
Traders will now wait for the European GDP release, due later today, and for the US Jobless claims data due tomorrow. In the meantime, earnings season continues with Tencent, Alibaba, Cisco, Nvidia, Swisscom and Carlsberg publishing their results today. Technically, the correction observed on European benchmark remains small for now, traders will have to wait for a break-out of strong technical levels to expect a deeper bearish move.