Today European indices have demonstrated a shift to optimism, appreciating moderately after a sharp tumble in yesterday’s session. Investors are focused on jobless data from Germany, which will be published later today.
During European trading this morning, STOXX Euro 50 rose by 0.37% from the previous session close but failed to keep bullish bias and fell later by 0.5%. French CAC 40 lost 0.17% and German DAX 30 gained 0.29%.
Stock markets remain feeble after Monday crash in China caused by the release of Caixin report (previous 48.6, actual 48.2, estimate 48.9) showing slowdown of Chinese economy. These are the lowest numbers since September last year and staying below 50 means that the slowdown prevails in China economy rather than upturn.
Markets are also turning into a risk-averse mood as geopolitical strains in Persian region are deepening because of Saudi Arabia breaking air communication with Iran and halting some financial operations between the biggest Oil exporters in the area.
Oil prices were kept in upbeat mode gaining $1.35 on Monday, but a glut on the market overwhelmed bullish sentiments sending the commodity below 37 again and erasing all gains. WTI grew +0.33% at 36.88 as of 10:30 GMT today. Further action on Oil will be probably set after EIA release on Crude Inventories in the US tomorrow.Publication source