European equity markets are trading slightly lower this morning, with the German index down 0.20 per cent on the day.
The Asian trading session was quiet, with markets in China, Hong Kong and South Korea closed for a public holiday and Tokyo´s stock exchange halting trading for the day due to an outage.
Nevertheless, Wall Street is sending positive signals which have lifted the mood on European markets too. Better-than-expected US economic data are fuelling hopes that the economic recovery remains on track.
Stimulus package in the offing?
Investors are still hopeful that Republicans and Democrats will be able to agree on another massive stimulus package before the recovery loses momentum.
Time is running out, and the longer the negotiations drag on, the greater the risk to the economy.
However, the latest economic figures are reassuring investors to some degree and signal that it is not too late to take decisive measures to support the economy.
It will become increasingly difficult for market participants to keep a cool head in the coming weeks.
As if the pandemic is not already causing enough headaches for investors, the political risks keep increasing.
The US presidential election might not go as smoothly as planned, and geopolitical tensions are on the rise too.
Investors should therefore buckle up as the market´s roller-coaster ride is only going to get more intense.