EUROPEAN SHARES
Shares slid slightly lower in Europe on Monday, paring some of the gains registered following new historical highs, as investors wait for new bullish catalysts.
Uneven performances were registered across the STOXX-50’s sectors this morning. Healthcare and utility shares are the top movers, while consumer cyclicals, basic materials, and tech stocks have had among the worst performances.
The overall price action on the pan-European index wasn’t very significant, mostly due to profit-taking moves from some investors following the recent record of over 4,780.0pts on Friday.
Even if new higher targets are now in sight for traders, they will likely need further bullish catalysts before driving the market higher.
While further macro development brought by Eurozone and US data alongside another batch of crucial earning reports are expected this week, we do not anticipate any significant breakthrough today as the agenda doesn’t contain any key EU data, while US markets will remain shut for President Day.
The STOXX-50 is trading right above its first support area between 4,745.0pts and 4,750.0pts, represented by the last tops as well as the rising moving averages, while the first resistance for the market can still be seen around 4,775.0pts.
Pierre Veyret – Technical analyst, ActivTrades
Source: ActivTrader
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