The key European indices continue to float around on the side, which confirms the overall uncertainty. It is being provoked by the US Fed key rate policy expectations, China’s wave of disturbance and increased volatility on the oil market.

The second day of the session proves DAX and EURO STOXX 50 consolidation in the broad side range, registering small losses compared to last week’s data. No panic however, the companies Kering SA and Zalando SE became their indices leaders. Both companies are retailers, but operate in different price ranges.

Any hints to the Fed being ready and consequently the ECB as well to terminate the key rate elevation, may bring back the buyers to the stocks market.

Last week leaders and outsiders:

DAX:

Top: Zalando SE +3.57%, Continental AG +1.65%, Münchener Rück AG +1.25%

Flop: Sartorius AG Vz -1.88%, Symrise AG -1.45%, Linde plc -1.18%

EURO STOXX 50:

Top: Kering S.A +2.54%, AB InBev SA-NV +1.59%, Allianz SE +1.43%

Flop: Air Liquide S.A. -1.29%, Deutsche Post AG -1.11%, Banco Bilbao Vizcaya Argent -1.05%

One should also pay attention to the securities of the energy sector, as the oil market remains unstable and volatile. This provokes major enthusiasm decline for the stocks of this sector.

Bond market:

Going further to the bond market, first of all let’s notice the absence of considerable changes in the 10-year yields profitability in Germany and France. This means the investors are awaiting the Fed key rate vote. The Fed’s decision to terminate their aggressive policy would likely make the European counterpart do the same.

Oil market

The week started with the oil sales, including due to the China’s disturbance. Let’s also consider the amount of new COVID cases which would mean new lockdown restrictions. All of that is a strong bearish fundamental factor for the oil market. Moreover, don’t forget about the reduced business activity in the majority of the developed countries, which also applies pressure to the oil quotes.

Above are the clear reasons for the further oil sales. With that the buyers also have strong facts on their side. In that case it is about OPEC, especially their intention to reduce the extraction volumes. That’s why aggressive sales are in the high risk zone, especially if we consider the prices reduction to it’s minimum this year.

Remember that the next meeting of the OPEC representatives is scheduled at the 4^th of December. The current week may end up volatile for this market.