European stock markets fell on Monday, following the trend set by Asian markets overnight and Wall Street on Friday, as investors awaited key U.S. inflation data. The DAX in Germany was down 0.7%, the CAC 40 in France dropped 0.4%, and the FTSE 100 in the U.K. fell 0.2%.
Global sentiment took a hit as uncertainty over U.S. interest rates led traders to lock in profits, especially in the technology sector. In Asia, Japan’s Nikkei 225 dropped over 2% after an upward revision in the country’s GDP data showed the economy avoided a recession in the fourth quarter.
Investors are cautious ahead of Tuesday’s inflation data, trying to gauge when the Fed might start cutting interest rates. Fed Chair Jerome Powell hinted at a rate cut later this year, but emphasized the need for confirmation that inflation is under control.
In Europe, the European Central Bank cut its growth and inflation projections last week, with President Christine Lagarde suggesting a rate-cutting cycle could begin in June.
In corporate news, Currys stock slumped 10% after U.S. investor Elliott Advisors withdrew its interest in making an offer for the British electronics retailer. HelloFresh also faced a steep decline after announcing lower earnings expectations for 2024.
Oil prices stabilized on Monday after recent losses, with concerns over slowing demand, particularly from China. Gold prices rose slightly, while the euro and pound traded higher against the dollar.
Overall, the global market outlook remains uncertain as investors await further economic data and central bank decisions.
