Shares in Europe traded in a mixed pattern on Monday as market sentiment becomes more nuanced. The risk appetite remains, especially after last Friday’s US NFP topped estimates and sparked hopes of a quick recovery in the second half of the year. Demand is rising in almost all sectors and countries around the world continue to ease lockdown while the spread of virus slows. Without any significant bearish leverage in sight, there is a high chance that investors chose to take a bit of profit following last week’s solid +300pts rally on the Stoxx-50 Index and ahead of another busy week. Nonetheless, last week’s much better-than-expected US jobs report may have pushed some investors to price a less dovish tone from the Fed’s upcoming meeting on Wednesday, which could lead to less directional markets this week.
The Stoxx-50 Index is currently making a corrective move below 3,385pts, the upper band of its mid-term bullish channel. Even if 3,285pts and 3,225pts remain the major supports to prices, another one could form today from the 13-period moving average above 3,320pts.
