The markets in Europe with higher open today, after risk appetite returns

After risk appetite returns and investors turn their attention to the economic factors, rather to continue to worry about the situation with N. Korea. We expect a positive start of the indices today. Traders fears have calmed as the verbal communication between both side subsided for now and the last communication from the US is seeking a diplomatic solution. The economic data from all economies do not show extraordinary growth but things are not dire and that supports the indices. The banking sector stocks rose on Monday by 1.4% and this may continue. If investors again start to worry about N. Korea, then we might see lower prices of the indices again later on during the session.

The price of Oil fell to $47.60 and this is not positive for the indices. The JPY is weak again for a second day, but this might be only a correction and to strengthen again with less risk appetite. The USD was stable and gained a bit, as the prices of Gold and Silver fell, to $1,275 and $16.85, respectively. The Euro is supported around $1.17740 and continue to test horizontal support at current levels. If the indices show weakness, we might expect higher Euro.

The busy economic calendar will increase the volatility today and might show the real moves and direction of the FX market and Stock markets. If there is appetite for risk then we will trade weaker JPY and lower Aussie, if not then stronger USD and Euro.

FTSE will open around 7,374, DAX will open around 12,215, and CAC will open around 5,142.

Trader - S. Fuchedzhiev

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