The opening mood is leaning towards being more cautious as we get the session underway:
- Eurostoxx +0.2%
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Germany DAX -0.3%
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France CAC 40 flat
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UK FTSE -0.1%
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Spain IBEX -0.1%
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Italy FTSE MIB -0.4%
European equities are seeing a more mixed start after yesterday’s strong rebound, with the broader STOXX 600 also little changed. The main shift from Monday is that oil prices are rebounding, with Brent crude now trading back above $101 as traders weigh the possibility of US-Iran talks on the sidelines of the UN General Assembly.
That is taking some of the shine off yesterday’s relief rally, when falling oil prices and lower bond yields helped lift risk assets sharply.
Germany is the notable laggard among the major regional markets. Deutsche Bank is also in focus after a report that its DWS asset management unit is considering measures to limit pressure from redemptions at German property funds.
Meanwhile, US futures are also looking more tentative with S&P 500 futures sitting flat and Nasdaq futures paring its slight advance from earlier to be down just 0.1%. That being said, the US lead remains relatively constructive after Monday’s strong tech-led rally, with the Nasdaq having closed at a record high.
Overall, the underlying risk tone is still supported by strength in tech and hopes for diplomatic progress in the Middle East. But as we start the session, the rebound in oil prices and bond yields is preventing European stocks from building much on Monday’s gains.
This article was written by Justin Low at investinglive.com.