European Shares
Stock indices opened in the green almost everywhere across the old continent on Tuesday, despite a mixed sentiment registered overnight in Asia. Most EU indices have edged higher after market sentiment strengthened following the response to the energy crisis that has been judged reassuring by most investors.
However, this trading optimism may be short-lived as today’s price action can also be seen as something more technical rather than fundamental.
There is a possibility that some investors have been tempted to take some profit out of their short positions following the 10% slide we’ve seen since late August on the STOXX-50 index.
Additionally, this could prove to be the calm before the storm, as most traders are still bracing for this week’s ECB decision on rates, waiting for more clues on where monetary policy is going in the Eurozone before bringing a stronger directionality to the markets.
