World Markets Today: Volatile Europe in Focus

1 Sep, 2014, (8:41 AM IST)

Aug 31, 2014, (11:11 PM EDT )

The Big Bang Monday for stock markets is here and I have been surfing the waves for past many hours, hope to do the same for next  many hours 🙂

Welcome to a swinging opening session in global stock markets of this week, where Europe will be in focus and dominate the trading trend.

Markets in U.S. and Canada are closed today for Labor Day vacation but it’s not going to make much impact on global markets as various crises in Europe, and a barrage of economic reports from the euro zone will dominate markets today.

But first, let’s start with Asian markets that have been rocking forex  markets in the background (and where I’ve been swinging like Tarzan from currency to currency 🙂 )

Various economic reports from Australia, Japan and China have come slightly below expectations; causing the Dollar index to rise and bringing down other currencies, including yen. Maybe that’s why Asian markets are trading with some gains, even though the Chinese PMI numbers have been disappointing, which usually results in negative trading in Asian markets.

Not so today.  Although U.S. stock futures are wobbling near the red line, and so is SGX Nifty.

Europe is in focus for four reasons:

1) Ukraine –Russia on the verge of full-blow war.

2) European leaders to hold “emergency meeting” about economic recovery in October ( that’s why Europe is drowning, “emergency” means three months later !)

3) Various important Economic reports from euro nations.

4) the ECB meeting later this week.

All these events will tug markets in different directions and that would mean a highly choppy trend in global markets. Of course, anything negative happening between Russia and Ukraine will outweigh any other even and might make markets rush down to previous low levels.

Global environment is quite negative this week, with news reports about strife, fighting, battles pouring in from around the globe. That will add to the volatility in markets and we can expect a mostly negative and subdued trend in global markets today. Any high point will be good for selling short.

Keep an eye on global cues and resistance levels. Give markets to settle for sometime before starting your trades today as markets will be jittery in absence of support from U.S. markets that have been making new highs.

Good luck, trade safely, enjoy the first session of this trading week in stock markets!

See you later.

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