European shares were trading between a flat quote and a slight upward bias early Monday, while Italian stocks were recovering after a series of sales driven by political nerves, while all eyes were on the meeting this week of the European Central Bank.
The Italian stock market performed better than the rest after suffering its worst day in months on Friday, as political tensions prompted speculation of early elections that would increase uncertainty for investors, but could also lead to a coalition of center-right more favorable for the market.
After ending last week with a marginal rise, in the hope that the US Federal Reserve would reduce interest rates by a more aggressive half a percentage point next week, the benchmark index of euro zone values rose around 0.05% at 0732 GMT.
The main Milan index showed a similar rise but the broader pan-European index that includes London and other non-euro markets was marginally lower.
The ECB meets on Thursday, and the money markets estimate that there is more than a 50% chance that interest rates will be reduced by 10 basis points. Analysts estimate that the Fed’s decision for next week will determine whether the rebound in shares since May will continue or be paralyzed.
The results continued to flow, with the Dutch health technology company Koninklijke Philips NV rising 2.7% after having exceeded comparable sales estimates for the second quarter.
Energy values remained green, following the increase in oil prices due to tensions in the Middle East.
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