Europe is about to start lower, Brexit weighs in again

Yesterday the US session managed to record strong growth, with technology stocks and somewhat better, albeit mixed, US data pulling up markets. Because of softer data, markets expect the Fed to confirm its more patient position on interest rates. However, the positive mood could not be transferred to Asia. Markets opened green but swiftly turned south, especially after worse data on China, which further aggravated the sentiment and the world economy. Of all this, of course, we can only blame the trade war. All eyes are on the talks, but European investors have additional grips to keep track of.

Indicative opening prices of major European indices:

DAX: 11562 -44 points

FTSE: 7146 -1 points

CAC: 5297 -64 points

Yesterday the no-deal Brexit option was rejected, but with minimal difference. Stormy debates followed in parliament, rumors of resignations, and pounds managed to record one of their best positive series for quite some time. Everything is going on for now, and the pound follows the development of the events. Today, around 21:00, Bulgarian time will begin voting on whether Point 50 should be extended. The expectation is the proposal to be accepted, pounds to rise, but the question is how much to extend Brexit. It is speculated for a new deadline by May 22 or end of June.

Today European markets will have a lot of information to process, but mainly the focus will be on Brexit. Europe is expected to open lower, but we can also see an attempt to rebound, given that no-deal options have dropped out.

Read more:

• Risk off after the escalation in the Middle East, markets are recovering in a period of calm
• The macroeconomic events for today’s trading calendar
• The US government has confirmed the attacks, Trump is calling an emergency staff meeting
• Has the war between Iran and the US started?
• US markets remain under pressure, traders await Iran’s response