European stock markets oscillated only slightly during Monday’s session, as the week kicked off with a holiday in both the US and the UK. The session was shortened thanks to Memorial Day in America and a bank holiday in England,which meant that trading volumes were significantly lower than usual.

Nevertheless, investors in Europe were getting the first chance to react to Federal Reserve Chairwoman, Janet Yellen’s strong indications that the US central bank would “probably” raise interest rates in the “coming months”. While higher US interest rates could sap global liquidity, Wall Street and European investors took Yellen's comments in their stride, suggesting that the world's largest economy was strong enough to weather another rate hike, following that in December.

This news did not do much for gold though, as the precious metal fell below $1,200 for the first time since mid-February, with MrsYellen’s comments sending the dollar surging to two-month highs. An increase in US rates would raise the opportunity cost of holding gold, which does not earn interest. It would also strengthen the dollar, making gold more expensive for other currency holders.

German stocks climbed to a one-month high on Monday as investors bet the euro’s weakness against the US dollar would help German exports. Germany’s DAX 30 spent the day in the green, gaining 0.46%. Among the heavyweights, Daimler’sshares rose 1.8%, dragging other auto makers up with it. Fiat Chrysler traded 2.73% higher, as did Volkswagen, which enjoyed a 1.1% gain on Monday.

Also trading higher was German airline Lufthansa after the company said it would suspend flights to Venezuela next month due to the country’s economic problems.Other movers during the day were shares in PostNL. The Belgian mail, parcel and e-commerce corporation announced that it attempted a merge with fellow Belgian mail operator BPost. However, talks fell on deaf ears, and no deal was concluded. BPostshares ended the day 2.43% lower.

In the technology sector, it was a rather rare sight for shares of Twitter to be up 5.24% to trade at $15.05.

Meanwhile, Crude oil prices remained little changed, as investors waited for cues from the Organisation of Petroleum Exporting Countries (OPEC) meeting due on Thursday, where the issue of oversupply is expected to take centre stage. Despite the low trading volumes, crude oil enjoyed a 0.3% rise on Monday, and is creeping back near $50 a barrel.

This article was issued by Rebecca Naudi, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article is being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd. has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.