A lot of negative risks still persist, albeit we can see improvement on some of them. First signs come from improvement in business mood in China, consequence of planned fiscal stimulus by government like added-value tax cut for manufacturers from 16 to 13%. Trump decided to stop new round of tariffs on China´s export as well, while negotiations continue and both sides are well motivated to find common solution because economic slowdown is becoming more and more visible.
In last months we have seen strong shift in central banks´ statements to dovish mood. While FOMC has stopped raising rates in this year, ECB even proceeded to some kind of accomodation with bank lending programme TLTRO III. In these consecutive days we are going to see brexit drama culminate and exactly this issue will probably determine further direction of equity markets in eurozone. Range between 11 400 and 11 800 points can be mantained until then, with possible fake break-outs.
