Sunday 22 October 2017

Calm prevails as Euro shares stabilise despite stimulus concerns

European shares steadied today after two straight sessions of losses, although traders saw little room for gains in the near-term due to mounting concerns that central bank support for markets was turning more cautious.

 

The pan-European FTSEurofirst 300 index was flat at 1,179.50 points in early session trading after having fallen to six-week lows on Tuesday, while the euro zone's blue-chip Euro STOXX 50 index also recovered to rise 0.1pc to 2,684.97 points.

The FTSEurofirst 300 remains up by 4pc since the start of 2013, despite having fallen some 6pc from a 2013 peak of 1,258.09 points in late May.

Hendrik Klein, head of high-frequency trading and investment firm Da Vinci Invest AG, said he remained bullish on equities over the longer-term but was more cautious in the near-term, due to the uncertainty over future central bank monetary policy.

"I'm still long-term bullish but in the near term, I'm more on the short side," he said.

Online Editors

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