After Wall Street's strong sell-offs last night, Asian trade went smoothly, with some of the markets out there in a positive territory. Despite China's disappointing GDP data, which further exacerbates concerns that the country's economy is slowing down, which will shrink global growth, China's markets are green. Futures on European stock indices will start trading in the last session of the week steadily with profits.
Indicative opening prices of European stock indices:
UKX: 7044 +36 points
DAX: 11572 +38 points
CAC: 5111 +15 points
Despite the turmoil since the beginning of the month, investor confidence seems to be returning on 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 tempting will be the trendy - banking, technological ones that suffered the most in the correction. Buy-the-Dip mentality remains in vogue and I expect fresh rises during the session. The drop in oil provides a good opportunity for longs on airlines as they 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 in Europe remains empty, with the accent coming at 6:30 pm with the announcement of BoE CEO Mark Carney. The traders will follow his comments on signals about the future of monetary policy along its path of normalization, as well as the impact of Brexit on the health and the development of the economy.
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