Despite the selloffs, European traders wake with a bit of optimism

After Wall Street's strong sell-offs last night, the Asian session went below the tune of the downgrade. However, some of the Asian markets managed to recover some of their early losses but eventually failed to float over the break-even zone. These feelings of optimism are also passed on to European traders who will try to put an end to the negative trend with fresh purchases at the start of stock trading today.

Indicative opening prices of European stock indices:
UKX: 6918 +26 points
DAX: 11,108 +47 points
CAC: 4,926 +18 points

Despite the turmoil since the beginning of the month, investor confidence seems to be returning to the back of good financial reports in the US and Europe. This, coupled with relatively low index prices in Europe, is a good prerequisite for European stock purchases. Of these, the most attractive will be trendy - banking, technological ones that suffered the most in the downs. Buy-the-Dip attitude stays in fashion for the moment and I expect fresh rises, at least during the first hours of the session. The oil downturn in recent weeks has provided a good opportunity for long-haul airlines to see a decrease in their spending, and let's not forget that we are entering the holiday season soon and consumers will have to buy their holiday tickets in advance.

Today, the economic calendar will offer traders the European Central Bank (ECB) decision on interest rates in the bloc. Expectations are to maintain current interest rates, but the key question is when exactly the central bank will start its way to normalize politics and exit from post-crisis quantitative easing.

Picture: pixabay.com

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