For the moment, the markets remain calm after the big moves of yesterday. Now, the traders have to analyze the events of the weekend and understand what they mean for the markets in the future.
In my opinion, it will take time for all of this to be valued in the asset values, so look at the headlines for commercial rhetoric, which may contain clues about the future. The dollar stays stable, with most major currencies staying tight. At its meeting today, the Governing Council of the Reserve Bank of Australia decided to reduce the cash rate by 25 basis points to 1.00%. This is after a similar reduction in the Council meeting in June. This easing of monetary policy will help boost employment and provide greater confidence that inflation will be in line with the MTO.
Today, the economic calendar provides several interesting news that may have a short-term impact on Europe's assets. At 09:00, we expect retail sales in Germany, then at 11:30 we will monitor the PMI construction in the UK.
Positive attitudes to stock markets remain at this stage, but I expect a cautious start of the session. I recommend waiting until the second half of the day, around 15: 00-15: 30, when City of London traders will return to their desks from a lunch break and New York wakes up. Then we will understand the true attitudes of the markets by reaching real trading volumes.
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