The European stock markets closed Monday with marginal losses. Investors were unsure of the direction of the market should, and risk appetite was again up for debate.
The weekend's weak economic data from China and Japan suggest a slowdown in global growth, and new initiatives from the Chinese authorities can become a reality, just as the Federal Reserve, monetary policy meeting Thursday may result in additional quantitative easing to increase growth and specifically employment.
But investors are already taken a bit advances on new quantitative easing. This is reflected in commodity prices, which has taken a jump up after the disappointing employment report from the U.S. on Friday.
It is interesting to look at sectors. If we see continued liquidity in the markets - as one would expect after the FOMC meeting in the U.S. - so there may be further increases in the shares, which are related to metals.
The many unanswered questions was, however, have the investors reluctant to open new positions and take new risks on the books, as reflected in the limited fluctuation in Monday's stock markets.
The broad European stock index Stoxx 600 closed with a fall of 0.2 percent, while the national index in London and Frankfurt ended with marginal decrease. The only real loser was the market in Paris with a minus of 0.4 percent.
A common feature of the national index was the financial sector. The banks are doing quite well in Europe. It is one of the sectors to be re-prized if some of the obvious risk elements are removed.
The ECB European version of the American "Operation Twist" has given the banking sector a breather. It could be seen in both Frankfurt and Paris, where the financial sector closed at the very top.
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