European equities are expected to open to mixed trade

European equities ended mixed on Monday, failing to hold onto last week's strong gains, as investors grew cautious over oil prices and individual stock news. Only the German DAX rose 0.16% thanks to companies such as RWE AG and E.ON SE and the formal statement of the economy ministry that provided sufficient funds for project costs for the decommissioning of nuclear power-stations.

European equities are expected to open to mixed trade Tuesday as the shine slipped from Asian markets on the back of concerning China data.China's trade balance showed a surplus of 60,34B, 60,24B compared to the previous period. Expectations were for a decline of the indicator to about 46,79B. The total relative score is negative.

Asian stocks slid down commodity currencies also.

The December futures on gold and silver (in COMEX) fell by about -1% and copper by -0.7%.

Continued fear of chaos on the emerging markets. International investors hold between 20% and 50% of local government bonds in Brazil, Turkey, South Africa, Malaysia, Mexico, Indonesia ... Fed indirectly orchestrated movements by rumors of interest and whenever the likelihood of lifting rise, the capital rush out of emerging markets, affecting heavily on local currencies and bonds.

We expect important data for the euro area, which will form the direction of expectations:

09:00 - Germany Consumer Price Index (CPI) MoM; (forecast: -0.2%)

11:30 - U.K. Consumer Price Index (CPI) MoM;  (forecast:  0.0%)

12:00 - Germany ZEW Economic Sentiment;  (forecast:  6.0)

12:00 - Eurozone ZEW Economic Sentiment; (forecast:  30.1)

A higher than expected reading should be taken as positive for the EUR, while a lower than expected reading should be taken as bearish for the EUR.

G.Hristov / Head of Fundamental Analyzes