Mixed moods on Europe opening, what can we watch today?

In early March, stock market negativity is likely to remain. European futures started with declines reflecting the worries on the political arena in Europe but quickly catching up with the differences. On the one hand, Germany can not yet form a stable coalition after the September elections, and on the other, this weekend is coming to an election in Italy. Excerpts show that no party will win a full majority, and this will lead to negotiation for a coalition with an unclear end. This is what the traders should watch closely about is how the negotiations will develop. The Italian economy is much weaker than Germany's and much more debt than GDP. For this reason, a slight turmoil in the country could lead to a heavy burden on the euro. After seeing what caused the delay in the choice of government in Germany and the uncertainty that has arisen, we can conclude that the elections in Italy will be of central importance to the political environment in the EU in 2018.

Continental cash flows remained in negative territory for the bulk of the session yesterday. Today we expect caution to dominate the markets by weighing up the wealth of economic data coming from continental Europe and the UK. What traders should follow is Germany's production PMI data at 10:55 and the UK at 11:30. At 12:00, we also expect unemployment data in the euro area.

Jr Trader Petar Milanov

Read more:

• USA ADP Nonfarm Employment Change: 202K vs 160K
• Iran response was ‘too fast and too furious’ on the U.S. airstrike
• USA – ISM Non-manufacturing PMI: 55.0 vs 54.5
• Top 5 things to watch on Tuesday
• Noise: How to Overcome the High, Hidden Cost of Inconsistent Decision Making