Most stock markets around the world drifted lower on Monday after new bearish leverages appeared and weighed market sentiment down at the start of the week. Even if most investors have their eyes on the economic recovery, their current focus on both macro data and international trade relationships has made them temper their exposure to share markets. This morning’s mixed sentiment is taking place after investors digested renewed US-Sino trade tensions, sparking concerns over the future of the relationship between the world’s two largest economies, and another deadlock in Brexit negotiations which also worries market operators as the ultimate deadline for a deal is approaching quickly.
Furthermore, after last Friday’s disappointing US jobs report, some investors are now betting on more economic and monetary support from both central bankers and governments with further US stimulus and increased bond-buying program from the ECB expected as early as this week. These hopes may increase the downside risk on most markets as if data, central bankers, or governments disappoint, the current bearish corrective move is likely to become sharper and deeper than initially expected.
The FTSE-100 Index from London is one of the only positive performers in Europe today, as prices are getting boosted by the Pound’s decline.
