It is a holiday in most of Europe but markets will be open; UK and US closed though
In the likes of Germany, France, Switzerland, and Austria, there will be a public holiday in observance of Whit Monday (general naming convention). However, the Euronext and Xetra bourses/platforms will be open for trading although the Swiss stock exchange will be closed.
So even with some markets being open, don’t expect much liquidity to feed through to broader markets today. That will make for rather exacerbated price action moves to any news or headlines. I’m not saying that the early risk-on wave in markets today may be just that, but there is a possibility.
That especially since it is also a market holiday in the UK and US. London markets will be closed in observance of the Spring Bank Holiday. So, that will make for rather thin liquidity conditions and near absent of real market players in Europe today.
And building on that, it is very much an extended weekend day with US markets also being closed in observance of Memorial Day.
In essence, real trading conditions will only return tomorrow and today can be taken to be part of a three-day weekend for most big money market players. As such, I wouldn’t place too much emphasis on the size of the price movements as they can be exacerbated considering the thin conditions at play.
Just keep that in mind when navigating through the trading day, even if there is building optimism towards US-Iran developments.
This article was written by Justin Low at investinglive.com.