FTSE 100, IBEX 35, CAC 40, DAX; profit taking or a bad day?

PM May's speech and Trump's inauguration seem to take the spotlight in financial markets this week. Meanwhile, traders and investors all over the world decided to play 'safe' and take some profits out of European Equities on Monday.

Today's trading session has been challenging for european indexes as the FTSE 100 trading at 7327.13, down -0.15% on the day, having posted a daily high at 7354.14 and low at 7320.47. Later the IBEX 35 trading at 9418.20, down -1.08% having posted a daily high at 9465.20 and low at 9407.80, then the DAX trading at 11554.71, down -0.64% having posted a daily high at 11579.05 and low at 11535.96, and finally the CAC 40 trading at 4764.07, down -0.75% on the day, having posted a daily high at 4911.39 and low at 4879.80.

Hated bargain; European equities

Bloomberg reports, "European stocks have had their Christmas bounce, catching up with Wall Street’s “Trump rally” that was sparked by hopes of greater fiscal spending and tax cuts. On the macro side, a euro-area composite Purchasing Managers’ Index climbed to 54.4 in December, showing the strongest economic momentum in more than 5 1/2 years. Still, institutional investors continued to cut their exposure to the region. 

The report continues, "European stocks’ valuation ratios relative to the U.S. market bring good trading opportunities in 2017, UBS equity strategists including Karen Olney and Nick Nelson wrote in a note, citing the market’s relatively rich dividend yield of about 3.6 percent and the potential for the gap between U.S. and European price-to-book ratios to tighten."

Will May spark another stock surge?