Share markets opened mostly flat in Europe for the end of the week as benchmarks consolidate gains registered during Thursday’s bullish session following the higher-than-anticipated US job report, while the US remains shut for holiday. The recent batch of solid macro data from different economic zones (US NFP, Chinese Industrial Production, EU PMIs) as well as encouraging trial results of a coronavirus vaccine, completely offset fears of a second wave, despite record infection numbers in some areas.
However, with the prospect of an extended virus crisis fading, investors’ focus is likely to be driven back to the US-Sino relationship, which has been strained since the validation of the “phase-one” deal at the beginning of the year. This remains one of the largest bearish factors still weighing on market sentiment, although it has not yet had a significant impact on prices as most traders remain optimistic of a positive outcome between the two blocs. Today’s session is likely to stay calm and quiet, with no significant macro data release in sight ahead of the weekend. However, small market corrections could take place today as markets may return to test yesterday’s break-out levels, as new support.
