Positive start of European trading

German DAX + 0.7%
French CAC 40 + 0.5%
FTSE + 0.4%

This comes after a heavy session yesterday for European stocks, where major stock indices recorded losses of over 1.5%. US futures are also up 0.40% at the start of the day, so the sentiment remains positive (for now). Things look calm, but as we saw yesterday, everything can change very easily and quickly.

Protective optimism, this is the best way to fix things. As such, traders remain uncertain as they make their way through today's session.

Investors should pay close attention to the yield and the dollar, as they not only predict interest rates, but exports and the economy as a whole. Traders have to decide whether the yield curve, which turned twice in the first half of the year as stocks reached their record highs - is a recipe for a crash or this time things are different.

Today, the economic calendar remains relatively empty, so market participants will mainly watch for news around the trade front. The resumed hopes of a ceasefire that came from Washington's comments that they will remove tariffs in North America are credited as traders are ready to re-allocate their funds to more risky assets. This gives the necessary strength to stock index futures, which, after the good start of Asia, signaled a positive start.

Against the backdrop of tension, investors will also rely on corporate results. The big names of this week's week are Target on Wednesday and Best Buy on Thursday.

Read more:

• US – Iran – Iraq tension remain the main driver of the stock market today
• How top market players on Wall St think 2020 will look like on financial markets
• Money Flow before the start of the new trading week
• Cincinnati Financial Corporation (CINF.US) -Opportunity for long positions
• Asia stocks gain as Fed signals no rate cuts in 2020