Europe is preparing to smile. Asia in red

Major European markets are pointing to a session in positive territory for the fifth consecutive day, as Europe is already close to reversing losses incurred in a series of declines last week.

Euro Stoxx 50 futures are up 0.6%.

Good corporate earnings, low stock values ​​and the calm situation in the UK, with a reversal of the mini-budget, are generating positive sentiment in the stock markets in the region.

But despite the optimism, “the analyst consensus remains subject to downward revision,” US bank wealth management analyst Terry Sandvin explained in a note seen by Bloomberg.

“The development of inflation, more ‘hawkish’ comments from the Federal Reserve, and slower growth in the 2023 earnings season are key aspects that will contribute to investor sentiment,” he adds.

In Asia, trading was negative with Hong Kong recording the largest decline in the region. That, even after the territory’s leader, Jun Lee, delivered a speech outlining new measures to cut furniture taxes and visa restrictions.

China’s Covid-Zero policy continues to weigh on sentiment, with the current Communist Party Congress giving investors little hope of potential relief.

In the remaining markets, by China, the Hang Seng tech index lost 1%, while Shanghai fell 0.5%. In South Korea, the Kospi Index is down 0.3%, while Japan’s Topix is ​​up 0.3% and the country’s benchmark Nikkei Index is up 0.6%.