EUROPEAN SHARES
EU stocks were little changed for the beginning of the week, ahead of a calm trading session as US and UK markets will remain shut for spring bank holiday.
Investors’ optimism has been slightly undermined on Monday after ECB official Philip Lane said monetary policy should remain restrictive through 2024, even though the central bank is set to start cutting rates in June.
With rising short-term uncertainty in Europe, most benchmarks are struggling for traction, leading to uneven performances across sectors.
Today’s trading session is likely to remain quiet as investors will face no significant macro data release, while both the UK and US markets will remain close due to a bank holiday.
We don’t expect any sharp and directional price action, as today’s session is likely to remain rather “technical” with indices expected to trade between key levels.
That being said, the technical landscape doesn’t look too bad for EU markets as the STOXX-50 index still trades above the 5,000pts level following its rebound on last Friday.
Prices have even validated the end of a flag pattern consolidation phase started mid-May, which now opens the doors to higher targets around 5,053pts, 5,076pts and 5,105pts by extension.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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