Daily market commentary: Stock benchmarks opens without clear direction while market volatility is on the rise

European shares

Stock benchmarks opened without clear direction while market volatility was on the rise on Monday as investors digested a batch of mixed economic news from different regions. Despite positive CPI data that topped estimates in China overnight, the Asian trading session was marked by lingering worries regarding the Covid resurgence in the area as investors still anticipate an impact on both demand and supply chains. Meanwhile, in Europe, investor focus took a break from the major market drivers, such as monetary policies and the war in Ukraine, to drive their attention towards the political situation in France. While the far-right candidate, Marine Le Pen, qualified for the second round of the election, investors welcomed the advance of current President E. Macron registered in polling stations. Volatility is likely to remain high on French stocks, especially as the traditional debate between the two candidates looms on the April 20. The best European performances are unsurprisingly being registered by French shares, with Energy and Financial stocks such as BNP, AXA and Total Energie trading on top of the board. Elsewhere, investors are braced for the start of the earning season due later this week, with big names from the US Banking sector like JP Morgan, Wells Fargo, Goldman Sachs and Morgan Stanley publishing their results on Wednesday and Thursday.