European Stock Markets are Shining On Improving Sentiments
European stock market futures are in green on Thursday after rallying sharply on Wednesday. The trader’s sentiments are optimized by several factors, including positive economic data, coronavirus relief package, and vaccine hopes.
The resumption of trade talks between the two largest economies also helped in soothing investor’s sentiments.
European stocks have also been following Wall Street trends. The US stock markets have hit a fresh record this week due to economic recovery and the launch of coronavirus vaccines.
The German government has announced to extend the coronavirus aid program to help people get out of the worse economic situation. The German government will pay to people who lost their working hours due to virus outspread.
In addition, the robust US economic data is adding to investor’s sentiments. Consumer price index and housing sectors have generated record gains in July. The data also highlighted that U.S. durable goods orders grew almost 11.2% in July, topping analysts’ expectations by a wide margin.
The resumption of trade talks between the largest economies contributed to bullish sentiments. China announced to buy a record level of soybeans from the United States this year in the wake of the phase 1 trade deal.
The market investors have also been closely looking towards Fed’s Powel speech at the Jackson Hole economic symposium. This is because the Fed’s strategy shows how the economy would behave in the coming days.
“Equities are unlikely to move too much until the speech is made, but afterward we could see a sharp increase in trading activity on the markets as investors get a clearer picture of the Fed’s intentions,” AJ Bell investment director Russ Mould said.
What Does it Mean for Investors?
- Equities are in the green all over the world.
- US Dollar looks steady amid strong economic data.
- Euro is trading around 1.18 level despite strengthening US Dollar.
- Gold is hovering around $1950 an ounce.