FRANKFURT: European shares eased in cautious trade on Monday as investors avoided making big bets pending the outcome of Sino-US trade talks in London.
The pan-European STOXX 600 ended slightly lower at 553.24 points, after four straight sessions of gains, its longest consecutive winning streak in three weeks.
All other major bourses closed lower. Trading was thin as markets in Switzerland, Denmark and Norway were among those closed due to the Whit Monday holiday.
The utilities sector was among the biggest losers. Often tracked as a bond proxy - a slide in Eurozone bonds pressured the index.
As a meeting between US and Chinese officials unfolded in London, markets sought any tangible signs of progress that might de-escalate the trade tensions between the world’s two largest economies.
“Trade talks can change rapidly, in terms of one minute, you think everything’s going fine and the next minute, something else appears and so investors are definitely taking a very cautious approach,” said Daniel Coatsworth, investment analyst at AJ Bell.
China said on Friday that it was willing to accelerate the examination and approval of rare earth exports to European Union firms.
Automakers – a sector vulnerable to any rare earth supply disruptions – was flat. For the rest of the week, a packed calendar of regional economic indicators includes UK unemployment and GDP figures. In addition, European central bank officials, including board member Isabel Schnabel, are expected to speak.
ECB policymaker Peter Kazimir on Monday said the central bank had nearly finished interest rate cuts and should watch data over the coming weeks to determine whether more action was needed.
Comments
Comments are closed for this article.