Shares rose in Europe on Monday, extending last Friday’s performance and following strong gains registered overnight in Asia while Treasury yield keep recovering from their annual low. Market sentiment has been sustained by President Trump’s latest words on trade. He said “positive talks” had been conducted with Beijing, according to Larry Kudlow. However, uncertainty remains as Washington officials also said the US are not ready to sign a deal with China yet.
Markets are likely to stay volatile as traders brace for a busy week full of economic data like the release of minutes from the FED’s meeting on Wednesday and Euro-zone PMI data due on Thursday. All eyes will be on central banks as the traditional Jackson Hole meeting kicks off on Friday. Many expect to see the FED’s Chairman, Jerome Powell, reassuring everyone by providing a clear view on the state and health of the economy.
For now, all European benchmarks are edging higher, with the DAX-30 index registering the best performance so far: prices cleared the 11,600.0pts level shortly after the opening bell this morning and are now heading 100-points higher, to the significant 11,700.0pts zone. A clearing of this price level could extend the current rally to 11,735.0pts and 11,785.0pts by extension.
