LONDON May 27 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
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.