Analysts have high hopes for the European stock market

European stocks are expected to increase on Monday, after positive momentum in other global markets. 

The positive start to the trading week in Europe reflects bullish sentiment elsewhere. US stock futures rose in the late-night session on Sunday, suggesting that major US stock indices could trade at or near records when regular trading opens in New York.

The moves in extended trading came after last week’s trading ended on an upbeat note, with the Dow Jones Industrial Average and S&P 500 hitting new all-time highs on Friday.

A much weaker-than-expected April jobs report also spurred expectations that interest rates would stay lower for longer. 

Equity markets in Asia-Pacific were also trading broadly higher on Monday, ignoring the weaker-than-expected US jobs reports for April.

On the earnings front in Europe, Euronext publishes an update, while Norway, Portugal, and Denmark publish inflation data.

The Stock Market Experts consider a long term bullish trend

At the beginning of May, analysts are cautious of the possibility of the famous seasonal pattern of selling in May. This caution is given by the moment in which the indices are found, accumulating spectacular profitability in the year, making it very likely that there will be a market consolidation after such a strong streak.

Alexander Dominicus, manager of European multi-investment boutique Mainfirst, expects a correction in the market without a doubt. 

Benjamin Melman, manager of Edmond de Rothschild, a private banking company headquartered in Switzerland, acknowledges that the risk of a return in volatility this month is more significant than usual. Precisely, it’s because of the current strong positioning in equities. Any unforeseen event can have a more substantial impact than expected. Melman explains that globally, there is a risk of escalation inflation fears that could affect fixed income markets and the main ones.