European shares opened mostly lower on Wednesday

EUROPEAN SHARES

European stock indexes showed a slight decline in thin trading on Monday, while Wall Street futures were optimistic after a debt ceiling deal was reached between US President Joe Biden and top Republican Kevin McCarthy. However, the deal is expected to bring only short-term relief as worries about inflation and rate increases persist. Asian stocks were mostly up, except for falling Chinese stocks after data showed profits in the industrial sector were slumping, signifying an economic slowdown.

Risk appetite is decreasing almost everywhere after investors witnessed Chinese export data falling short below expectations, reviving concerns of slower global demand. Even though most sectors opened in the red, the news had the biggest impact on energy shares, which along with miners, semiconductor and chemical companies are the worst performers so far.

The Stoxx-50 index has erased yesterdays profits with a pull-back towards its first support area over 4,277.0pts while both EMA remain in a bearish configuration.

Today‘s macro agenda contains less major news than usual but market sentiment could significantly change with this afternoon’s US crude oil inventories, as depending on the actual data, this report usually has a major impact on energy stocks.

Note All The information provided here does not include financial advice. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.