Stocks were struggling again in Europe after yesterday’s short-covering bounce. It remains to be seen how the markets will end tonight after what has been a turbulent week so far. Will an unexpectedly good US employment report be enough to lift sentiment? Will opportunistic investors step in, hoping that the upcoming US-China trade talks will result in a breakthrough? Or will investors use this opportunity to close out their positions that were previously in deeper losses? We reckon that if the employment report is a poor one, then stocks may fall into the close – for the markets have responded negatively (for a change) to bad data so far in the week, suggesting investors feel that monetary policy alone is no longer enough to support stocks at these extremely elevated levels.
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