The main index of European stocks fell on Monday, led by mining company stocks, as investors awaited critical reports on inflation that will be issued throughout the week, searching for more evidence of when the major central banks, including the European Union, will reduce interest rates.
Price movements
The European Stoxx 600 index fell by 0.4 percent at the close.
The index has risen by 3.4 percent so far in 2024 and even closed at its highest level ever on Friday, driven by high expectations for early monetary policy easing and a strong earnings season.
The German DAX index reached a new record level during today’s trading and closed higher, supported by a 2.8 percent rise in Rheinmetall Defense Industries shares.
The continued downward trend in inflation in the euro zone, with data scheduled for Friday, may raise hopes that the European Central Bank will cut interest rates in the near term and stocks will gain further.
However, traders expect the bank to hold interest rates at its monetary policy meeting next month.
Traders will evaluate the core personal consumption expenditures price index data in the United States, which is the US Federal Reserve’s preferred standard for measuring inflation, and which is scheduled to be released on Thursday as expectations for easing US monetary policy continue to diminish.
The basic resources index fell 2.1 percent to its lowest level in four months, topping the decline in sectors, while the technology index rose 0.4 percent, led by a 6.5 percent jump in the shares of BA Semiconductor Manufacturing Company.
Zealand Pharma shares jumped 35.7 percent after an experimental drug it developed with another company led to what it described as “pioneering” results in an intermediate stage of treating fatty liver.
Swedish Kenifik shares rose 5.4 percent due to plans to sell its entire stake in Tele2 to French investor Xavier Niel and his company Eliad Communications.
Tele2 shares increased by 5.3 percent.
2024-02-26 18:52:30
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