European Markets open higher as risk appetite returns

European Markets open higher as risk appetite returns

 

European markets opened higher as some risk appetite returned despite political turmoil in the United States. The Wall Street closed yesterday green with S&P 500 higher by 0.37 percent and NASDAQ up by 0.73 percent along with stable dollar.

Following positive session in North America, the DAX is now higher by 0.28 percent with most sectors in green.

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DAX opened higher along with other European bourses as some risk appetite returns after positive US session. source:  Bloomberg

The main story of this week is clearly President Donald Trump. His sudden dismissal of FBI director James Comey last week has led to a biggest crisis in his presidency. On the wave of more revelations about Trump’s alleged pressures on former FBI chief we saw the biggest sell-off in over eight months on Wednesday.

However, Robert Mueller who his now a special counsel to investigate alleged ties between Russia and Trump’s campaign during appointment in Justice Department calmed down investors.

Trump in his first foreign trip since taking the office, will attend at regional summit in Saudi Arabia.

Today investors are likely to watch how events in Brazil are unfolding. As we informed yesterday, Brazil stocks plunged 10 percent on bribery scandal. Presidend Michel Temer was accused of paying substantial amounts of money imprisoned former senate collegue in a large scale corruption probe.

In the other news, Iran’s presidential election is taking place where current  President Hassan Rouhani is on his way for a second term in office.

In energy sector, oil prices rose after some producer countries indicated they would extend output cuts. Benchmark Brent crude gained 0.59 percent to trade at $52.82 a barrel while US crude oil added 0.73 percent to trade at $49.71.

The key OPEC meeting is coming quickly, as countries will decide on 25 May to extended oil cuts that have been implemented in the first half of this year. Algeria, a country that was vocal and helped craft a deal last year said it was optimistic this time as well.

Today we have a Canadian CPI and core retail sales at 1:30pm.

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