European stocks under pressure on recession fears

The FTSE 100 wiped out 6 points of its initial benchmark profit and would start at about 7.222 points with 16 points ahead, the German DAX will open about 20 points up, and the German CAC is about 5 points up.

Market participants take a cautious position because of fears of slowing the global economy. The bond market in the United States has signaled over the last few days that the recession may be set as yields on 10-year government securities fell below the 3-month mark for the first time since 2007.

This forms the so-called inversion of the yield curve, where short-term bond yields rise above that of long-term bonds.

Today we expect a statement from ECB President Mario Draghi. The central bank lowered its expectations for eurozone growth for 2019 at its last meeting and cut the hopes of bulls to raise interest rates in 2020.

On the corporate front, Lloyd will report their earnings today. The financial institution is the subject of much speculation recently, following Bloomberg’s latest reports of sexual harassment.

As far as economic data is concerned, we expect consumer confidence, Italian business confidence and French unemployment benefits in France and Italy.

 Trader Aleksandar Kumanov

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