Shares are rising in Europe this morning, following a bullish Asian trading session and confirming last week’s rally on stocks. The recent sentiment has also been boosted by VP Mike Pence’s last words about “positive signs of progress in the talks with China” ahead of the highly anticipated next G-20 meeting in Osaka later in the week. However, the risk-on mood might be short lived; investors may be tempted to take some profit after last week’s gains and reduce their exposures as volatility will likely be on the rise prior to the G-20 on Friday.
Furthermore, investors may want to adopt a more prudential approach in their trading as geopolitical tensions between the U.S. and Iran remain high after President Trump said he will unveil new major sanctions against Tehran on Monday. With no strong technical signs of a trend reversal on stocks so far, a corrective would be expected at this point as markets needs to confirm their new support price level before registering new highs.
The worst performance today is being registered by the German DAX-30 index in Frankfurt as prices trade towards 12,280.0pts. However, the bullish trend will remain valid as long as the market doesn’t break the 12,250.0pts zone.
