Shares traded higher from Tokyo to London on Monday as investors start the week on an optimistic note as major economies reopen. All European benchmarks registered a bullish opening with mining and energy shares among today’s top movers with market sentiment fuelled by fresh hopes of a global recovery. However, even if the number of daily deaths from the virus is at its lowest since March in most of Europe, the lack of a proper cure and the difficulty in assessing the long-term economic damage caused by it means we’re not out of the woods yet and is likely to maintain pressure on stock prices in the medium term. This uncertainty is reflected in demand for safe havens, with the gold price hitting its highest in seven years, which clearly indicates investors are seeking to diversify their investments and hedge their mid to long-term bets on riskier assets like stocks in the case of a downside move later this week.
The DAX-30 Index is Europe’s top performer today, boosted by auto shares, as the price now challenges the double resistance at 10,770pts. A break-out of this level could take the market higher towards 10,980pts and 11,300pts by extension.
