European stocks steady at the start of a short business week

European stocks stabilized at the start of a holiday-shortened working week, with investors valuing big gains prompted by signals from major central banks of monetary easing.

According to Reuters, the European STOXX 600 index fell 0.02% on Monday, hovering below the unprecedented high level it reached last week. Losses in shares of retail sector companies limited a rise driven by gains in shares of travel and entertainment companies.

Goldman Sachs raised its expectations for the European Stoxx 600 index by the end of this year from 510 to 540 points, indicating a potential improvement in economic growth and easing monetary policy.

The revised forecast represents an increase of about 6.0% from Friday’s close of 509.64.

Among the stocks that witnessed major movements, Direct Line shares fell 12.3% after the Belgian insurance company Agias said that it did not intend to submit another offer to the British home and car insurance company after it rejected two previous offers.

Shares of Swedish real estate group SBB jumped 12.4% after it said it would buy back debts at a 60% discount compared to the original value of the debts, in an attempt to calm investors at a time when the company is seeking to deal with accumulated debts worth billions of dollars.