General sentiments before the start of the European stock market are positive, given the purchases made at the end of the US session and the positive Asian session. Purchases in Asia were dictated by US Secretary of State Larry Kudlow's comments that Donald Trump will meet Xi Jinping and discuss a possible outcome of the war.
Today, during the European Session, two important economic indicators from Germany and the Eurozone appear in the calendar. At 10:30 we expect data on Germany's production PMI and at 11:00 production PMI from the Eurozone. Expectations are for a fall in both indicators, which could put pressure on the EUR.
Following the opening of European markets, it is good to focus on buying European indexes in the short term and the Long term Short positioning of the automotive sector. As for the FX market, I expect the JPY to continue to weaken and CAD to remain under pressure until 17:00, when Bank Of Canada will publish its decision on the base interest rate.
Indicative opening prices of European stock indices:
UKX: 7010 +7 points
DAX: 11393 +3 points
CAC: 5034 +6 points
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