EUROPEAN SHARES
Shares edged higher in Europe on Monday, alongside Asian stocks and US futures, despite uneven sectorial performances. Investors remained optimistic for the first trading session of the week, holding most benchmarks afloat as basic material shares offset losses from carmakers. In addition to monetary policies that have been driving market sentiment over the past couple of days, today's focus is widely kept on the Middle East following the passing of the president and foreign minister of Iran over the weekend.
Investors are digesting the news and trying to assess what this event could mean on the geopolitical front in the military conflict with Israel. The immediate reaction was a rush to safer havens such as gold and silver, which benefited the mining sector this morning. However, we expect this price action to remain limited as investors will likely await further developments before bringing more directionality to this move.
On the macro front, traders and analysts will still have a lot on their plate this week, with additional significant economic data from the EU, inflation reports from Japan, Canada, and the UK, and rate decisions from a batch of other nations. Meanwhile, tech stock investors will await Q1's results from giant chipmaker NVIDIA after Wednesday's closing bell. Technically speaking, the situation still looks optimistic as the STOXX-50 index trades in a continuation flag pattern above a major support zone.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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