Despite the strong start of the stock market year, caution and hesitation is beginning to sneak through investors, which has also relied on indices. They are currently in a mild correction phase, with the poor performance of the US and Asia yesterday also affecting the start of European trade today. Futures of the main indices point to opening in red:
Indicative opening levels of major stock indices
UKX: 7,096 -15 points
DAX: 11,010 -24 points
CAC: 4,984 -11 points
Today there are no important economic news to mitigate (or mitigate) the mood, so asset prices will mainly determine the underlying fundamentals – the trade war, the uncertainty surrounding the Government and the Trump Administration, Brexit, and so on.
It is good to note that oil is currently in support, with even signs of promotion. An eventual rise in black gold prices will negatively affect oil companies as this will increase their operating costs.
The European Central Bank has reduced its growth forecast in the eurozone, which is a blow to the expectations of the markets for interest rises. According to recent rumors, the earliest lifting of the rates can be said at the end of 2020, compared with the expectations for June next month. This will have a negative effect on the euro.