Positive moods during the Asian session will also be transferred to Europe. However, futures of European indices indicate not so good a start. The reason for this is the sharp drop in oil, which has a severe negative impact on energy companies with a high weight in the main stock indices.
The main catalyst for the stock and FX markets will be the results of the midterm elections in the United States. It seems that the Democrats will take the lead in the House of Representatives, which will increase the risk appetite. I expect growth in stock indices and risky currencies such as NZD and AUD.
Today, during the European session, we expect euro area retail sales that will have a limited impact on the EUR, given the shifted focus of traders on the results of the US state indexes.
At 17:30 we expect official US oil inventories that can seriously shake the energy sector.
Indicative opening prices of European stock indices:
UKX: 7,068, 2 points profit
DAX: 11,553, 20 points profit
CAC: 5,105, 7 points profit
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