Europe trades in different directions and prepares for a traditionally difficult month
Europe continues to trade mixed as buyers return to pressure looking for undervalued equities and while the market waits for a hawkish monetary policy to fight inflation that accelerated in the eurozone in May.
The Stoxx 600 continues to trade near the waterline (0.03%) at 443 points. Of the 20 sectors included in the index, the banking sector leads in growth in anticipation of an increase in interest rates in July, while the energy sector leads in losses.
The European benchmark, as well as other markets in the bloc, has been pressured by the expectation of a restrictive monetary policy, which fuels fears of a possible economic downturn. Investors are still nervous about the times ahead, given that over the past 20 years, June has been, on average, the worst month of the year for the benchmark.
Elsewhere in Europe, shares of Madrid rose 0.10%, Frankfurt 0.40% and Paris 0.18%. Milan is up 0.28% while Amsterdam is down 0.31% and Lisbon is down 0.11%. London is trading at the waterline (-0.04%).
“We are revising our expectations downwards given the slowdown that is clearly coming. Slow growth and tighter financial conditions will be a tough recipe for the market,” Honey Redha, head of European asset management at Pinebridge Investments, said in statements to Bloomberg. .
