jan 31  welcome to the home for realtime coverage of markets brought to you by reuters reporters you can share your thoughts with us at marketsresearchthomsonreuterscom its been a bruising month for risk assets but a range of technical indicators say its time for investors to jump back in even though geopolitical and rate jitters are here to stay jp morgan says its vix signal entered buy territory last week a move which historically has been a prelude to stock market gains over the following 16 months in 100 of the times outside recessions also according to strategists at the us investment bank equities have plunged to oversold levels and the market internals are encouragingly staying prorisk we continue to believe that one should be using the dips as the opportunities to add and favour cyclicals banks commodities against defensives such as healthcare and tech they conclude some earlier reading on buy signals graphicmarket signals scream buy after world stocks tumble read more stoxx on the up italy outperforms tech leads 0903 gmt equities in europe kicked off another big week for central bank meetings on the right foot with the stoxx 600 rising over 1 in early deals helped by wall streets late bounce on friday italian stocks stood out up 16 after the reelection of outgoing president mattarella averted a political crisis offering relief to investors and boosting local banking stocks ftitlms3010 as the countrys borrowing costs fell tech sx8p was the biggest gainer up 28 from an 8month low while travel and leisure sxtp lagged after ryanair reported a q4 loss but said it was hopeful that rivals cuts to capacity may help push prices up in the summer season profit warnings at oil services firm saipem and french retailer casino added some gloom sending their shares down as much as 27 and 9 respectively the days of wild swings arent over and with bears and bulls still fiercely wrestling for control investors could see their nerves tested again this week as geopolitical tensions build up and policy tightening remains centre stage so while the bank of england is set to raise rates for the second time in a row and the feds bostic said a supersized rate hike may be needed the uk warned it was highly likely that russia was looking to invade ukraine and nato voiced concern over europes energy security and if it werent enough north korea tested an intermediaterange nuclearcapable missile for the first time since 2017 the us said the test was part of an increasingly destabilizing pattern and urged pyongyang to join direct talks with chinese markets closed european stock futures were up 15 ahead of the cash market open powered by fridays late rally on wall street to its best day this year following a frantic week of topsyturvy trading world shares miwd00000pus have erased nearly 5 trillion of market cap this year and are set for their worst month since april 2020 in a downtrend partly cushioned by positive soundings from the earning season the reelection of outgoing 80yearold italian president mattarella means former ecb boss draghi will carry on as prime minister and in portugal the socialists won an outright parliamentary majority in a snap election defying all odds as a result italys 10year bond yields saw a chunky drop of over 6 basis points narrowing the spread against the safer german equivalent  key developments that should provide more direction to markets on monday