European equities are set to start little changed as sentiment remains mired in indecision. Yesterday’s gains could be summed up as drifting, no conviction and not likely to last. Until we get some clarity on the direction of China’s economy and US monetary policy, expect markets to remain listless.
U.S stocks closed up Monday recovering from an end of week sell of that was triggered by the Fed’s decision to halt a rise in interest rates. The Dow gained 175 points being spurred on by stronger than expected home resales with investors putting the uncertainty of global growth behind them.
The U.S dollar and oil prices also gained on Monday alongside stocks with Gold falling back from three week highs. EUR/USD fell almost 1% extending its three day losing streak as traders continue to maul over hawkish comments from the Fed.
The strengthening dollar spelled bad news for Gold with futures dropping 0.4% as investors continue to revise their estimates on the timescale of a rate hike.
Contributed by Capital Spreads
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