It was a relatively bullish start to the week for the European majors on Monday. While there were no major stats to provide the majors with direction, there was plenty for the markets to consider. Ahead of the European open, better than expected wholesale inflation figures from China supported riskier assets. While the stats were positive, rising tension between the U.S and China pinned the majors back on the day.
Following Trump’s moves against China last week, China reacted by imposing sanctions of its own on 11 U.S lawmakers. The good news, however, was that Beijing held back from targeting members of the U.S administration. Trade talks are reportedly scheduled for the end of the week.
With economic data, corporate earnings, and monetary policy and fiscal stimulus all supportive, today’s stats will need to be dire to sink the majors.