What has happened in Asia and how it will affect the European market

Asian session - During the Asian session, New Zealand's GDP data showed the biggest impact on the markets, which proved much better than expected: 1.00% vs. 0.80% expected. As a result, NZD traded 0.60% higher than the major currencies, with no signs of slowdown. The Asian banking sector has also been able to accumulate positivism gained during the US session. In addition to the positive picture in Asia, we can add Chinese Prime Minister Li Keqiang's comments, which have confirmed the country's position on the trade war - "China will open even more its markets." "The multilateral trade regime must be preserved and improved through negotiations"

Oil futures continued to rise during the Asian session, and this in turn would provide good prerequisites for energy stock purchases during the European session.

How the Asian Issues Will Influence European Markets - Given the much better data on New Zealand's GDP and the strong Price Action in support of the currency, I expect the NZD to get a further boost on the European interbank market (09:00 - 10:00) support.

As far as the stock market is concerned, I expect the cash flows to be directed to the banking and energy sectors. Given the large exposure of energy companies to core stock indices, I expect the growth of the energy sector to bring European markets to positive territory.

Photo: Pixabay.com

Read more:

• USA ADP Nonfarm Employment Change: 202K vs 160K
• Iran response was ‘too fast and too furious’ on the U.S. airstrike
• USA – ISM Non-manufacturing PMI: 55.0 vs 54.5
• Top 5 things to watch on Tuesday
• Noise: How to Overcome the High, Hidden Cost of Inconsistent Decision Making