Key Points
- The STOXX 600 index declined by 0.052% after four weeks of consecutive declines, the longest losing streak in over two years.
- European tech shares dipped, with Nvidia’s upcoming earnings adding pressure to the sector. Real estate stocks led losses across major sectors.
- Investors closely monitor remarks from ECB policymakers, including Christine Lagarde, for rate hike signals.
- After a strong revenue report, Melrose Industries reported a 7.7% surge, while Prosus climbed 2.2% on a positive trading statement.
European shares remained directionless on Monday following four consecutive weeks of declines, as investors focused on upcoming speeches by European Central Bank (ECB) policymakers for insights into the future path of interest rates.
The STOXX 600 index, a benchmark for European stocks, declined by 0.052% or 0.26 to 502.86 at 08:53 GMT. Last week, the index posted its first four-week losing streak in over two and a half years, weighed down by underwhelming corporate earnings, rising U.S. Treasury yields, and concerns about the global economic impact of U.S. policies under President-elect Donald Trump.
Technology stocks saw a slight dip, with Nvidia’s highly anticipated earnings report on Wednesday casting a shadow over the sector. Meanwhile, real estate stocks led the market’s decline, reflecting broader investor concerns.
Attention now turns to remarks from key ECB figures, including President Christine Lagarde, later in the day. These speeches and eurozone flash Purchasing Managers’ Index (PMI) data due Friday are expected to provide critical insights into monetary policy adjustments.
On a brighter note, Britain’s Melrose Industries surged 7.7% after reporting a 7% revenue increase for the four months ending October 31. The company, which owns aerospace parts manufacturer GKN Aerospace, attributed the growth to strong performance in its core markets.
Dutch technology investor Prosus also posted gains, climbing 2.2% following a positive trading statement. The subdued performance of European markets reflects investor caution amid mixed economic signals and uncertainty about the trajectory of interest rates.
