European shares rebound as bullish trend seen intact

Business & Markets 2013
Written by Reuters
Monday, 27 May 2013 15:29
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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 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. - Reuters