EUROPEAN SHARES
European shares slid slightly lower at the opening of the first trading session of the week as investors brace for monetary decisions from the Fed, the Bank of Japan and the Bank of England.
Volatility was on the rise on Monday morning, with consumer cyclicals, real estate and tech shares leading most EU benchmarks lower ahead of another busy week.
However, on the technical front, today’s price action isn’t threatening yet for bull traders as it can be seen as a “usual” corrective move following the strong rally that started last week.
The STOXX-50 index is challenging a newly established floor between 4,265.0pts and 4,280.0pts, where buyers seem to be powerful enough to prevent the market from dipping lower so far. The short-term bullish trend will stay alive as long as no break-out is registered below that level.
With this week’s batch of key macro events, we expect market volatility to remain high as investors will try to assess where monetary policies will go following the decisions and public statements on rates from the Fed, the BoJ, and the BoE following the dovish hints provided last week by the ECB.
Pierre Veyret– Technical analyst, ActivTrades
Source: ActivTrader
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