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European shares rebound as bullish trend seen intact
May 27, 2013 / 7:15 AM / 4 years ago

European shares rebound as bullish trend seen intact

LONDON, May 27 (Reuters) - European shares rebounded on Monday from sharp falls in the previous week, as traders used technical signs that the equity market’s long-term bullish trend remained intact as a cue to buy back into stocks.

The euro zone’s blue-chip Euro STOXX 50 index rose by 0.8 percent to 2,786.21 points, while the pan-European FTSEurofirst 300 index also advanced 0.3 percent to 1,230.59 points.

Volumes, however, were likely to be thin since both the U.S and UK markets were shut for public holidays.

Euro zone blue-chip stocks suffered their first weekly loss in a month last Friday, caused by worries about a possible scaling back of the U.S. monetary stimulus measures, which have helped drive a global equity market rally this year.

However, some traders took encouragement from the fact that in spite of that pull-back the Euro STOXX 50 managed to end the week off its lowest point in the 2,754 area, which corresponds to a support level marking the index’s peak in late January, suggesting residual appetite for shares.

“I think the medium-term trend is still bullish,” said Hendrik Klein, who heads high-frequency trading and asset management firm Da Vinci Invest.

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