(MENAFN– ecpulse)
European equities traded lower with the start of the weekly session Monday after capping the biggest weekly rally since April as Syria tension returns center stage with U.S. lawmakers convening today.
Gains in Asia did not support European stocks with the start of the session with the lack of major data this week, keeping focus on the developments with Syria and the upcoming FOMC decision as tapering projections prevail.
- STOXX 600 is trading lower by 0.06% at 284.47
- STOXX 50 is also in the red off by 0.14% at 2799.46
The early trading hours of the session are still cautious with the gains in Asia offsetting the negative pressure and profit taking after last week’s rally.
Syria is once again center stage with the uncertainty still evident. The U.S. Senate is expected to vote on the resolution for a strike by the end of the week as they begin the discussions today. Syria President Bashar al-Assad denied authorizing a chemical weapons attach on his people and according to CBS that reported Sunday in a preview of the interview with Assad the Syrian President warned that a U.S. military strike would trigger retaliation by Syria and its allies.
- FTSE 100 is trading lower by 0.10% at 6540.71
- CAC 40 trading lower by 0.13% at 4043.97
- DAX is trading higher by 0.15% at 8288.23
- FTSE MIB is trading higher by 0.27% at 17092.92
- IBEX 35 is trading lower by 0.27% at 8631.30
The Syria uncertainty will continue to be the main pressure on markets this week, especially with the lack of major data. The other part of the equation will be Fed tapering expectations as the FOMC meet next week to decide on monetary policy.
Even after disappointing jobs report Friday from the United States, investors are still betting on Fed tapering even as bets slim for a move this month, they remain debated and affecting the market.
Volatility is likely to dominate today and news from the U.S. Congress will be of high importance as offering approval to strike Syria will have a heavy impact on the market and especially as crude prices will continue their bullish rally.
In a rare interview with CBS and PBS Syria President Bashar al-Assad will appear on U.S. media alongside scheduled heavy media appearance for U.S. President Obama as he will utilize the weekly address to touch on Syria before his scheduled address to the nation on Syria Tuesday. The media will be the fuel for market movement this week and today in particular and volatility is highly expected.
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