Somewhat surprisingly, the negative reaction to the disappointing Chinese data was very limited, indicating that much of the bad news has already been priced in, as the Volkswagen shock slowly fades, general positive economic fundamentals and supportive central bank stances should increasingly lend support to markets.

Markus Huber

Categorized in : Company News

European equities are trading higher this morning as a very respectable European earnings season and improving growth prospects are providing investors with plenty of reasons why to favour European stocks versus Asian and U.S. ones, overall sentiment remains positive with Europe likely to continue to outperform their American peers.

Most of the fall is coming from China ... European markets are getting hit, i think a lot of people have the view that China is going to continue to slow down and that slowdown is not really priced into European markets at the moment.

The earnings announcements are mixed and there is a little bit of an anticlimax after the Greece headlines.

The earnings announcements are mixed and there is a little bit of an anticlimax after the Greece headlines. A lot of people did not expect the worst to happen and so money had already poured in.

The earnings announcements are mixed and there is a little bit of an anticlimax after the Greece headlines ... A lot of people did not expect the worst to happen and so money had already poured in, along with the focus on central bank timing of interest rate hikes ... that's probably why the market is going back and forth.

We're buying the dips and when it reaches new highs we take a little bit of profit, but not too much.

Chances appear rather slim for a compromise, which heightens the risk of a possible Greek default and exit out of the euro in just a few months from now.

If this situation where a risk-off approach by investors is favoured drags on, markets are running the risk that the recent positive sentiment derived from the QE announcement will fade more and more into the background.

QE itself is in the market except its size and how long it will last, anything less than 500 billion euros would be definitely a disappointment (and) if it's just a year, that's also already in the market.

QE (speculation) has been around for so long that I think it will be a 'buy the rumour and sell the announcement'.

Sentiment is bullish, we're long the DAX because America has outperformed hugely, and even though growth there is strong it's already in the price whereas in Germany there's more to come.