Reply To: Traders Market Weekly: Valuation Matters in Earnings Season


Major European indices trade in the red with Italy’s MIB (-3.2%) showing relative weakness.

Italy’s Prime Minister Draghi will face a confidence vote and there is speculation that M5S will boycott the vote, which could lead to a collapse of the current government.
Shell’s CEO warned that Europe may be headed for energy rationing in the winter.
The European Commission will reportedly lower the EU’s 2022 growth forecast to 2.6% from 2.8% and cut the outlook for 2023 to 1.4% from 2.3%. The inflation forecast for this year was raised to 7.6% from 6.1% while the outlook for 2023 was increased to 4.0% from 2.7%.

—Equity Markets—

STOXX Europe 600: -1.3%
Germany’s DAX: -1.5%
U.K.’s FTSE 100: -1.3%
France’s CAC 40: -1.5%
Italy’s FTSE MIB: -3.2%
Spain’s IBEX 35: -2.0%