Tech Shares Weigh on STOXX 600 as Fed Policy Decision Looms
The STOXX 600 index closed 0.2% lower on Monday, primarily due to losses in heavyweight technology shares. Retail led gains with a notable rise, while the focus remained on the U.S. Federal Reserve's expected rate cut decision. Central bank policies in Norway and the UK also hold investor attention.
Europe's STOXX 600 ended slightly lower on Monday, recording a 0.2% drop as heavyweight technology shares pulled the index down. The minor slump came ahead of the highly anticipated U.S. Federal Reserve policy decision, expected to mark the beginning of a new easing cycle.
The pan-European index snapped its three-day winning streak, mainly due to a 1.2% decline in Europe's tech sector—marking the largest percentage loss among major STOXX sectors following last week's near 5% surge. Retail, however, led gains with a 0.9% uplift, buoyed by a 3.1% increase in H&M shares.
Investors are keenly observing the U.S. central bank's interest rate decision set for Wednesday, where money markets have pegged a 61% chance of a 50-basis-point rate cut and a 120-basis-point total easing by 2024. Meanwhile, central bank rate decisions in Norway and the UK are also drawing interest. In France, Rexel shares surged 9.1% after rejecting a $9.4 billion acquisition offer, while French drugmaker Ipsen saw a 3.7% rise after RBC upgraded its rating. On the downside, Nestle shares fell by 1% following a downgrade by Morgan Stanley, and Worldline plummeted 15.2% after announcing its CEO's departure and issuing a third profit warning.
(With inputs from agencies.)
- READ MORE ON:
- STOXX 600
- Federal Reserve
- tech shares
- rate cut
- ECB
- Rexel
- H&M
- Nestle
- Worldline
- central bank
ALSO READ
ECB's Latest Moves Stir Euro Zone Bond Yields
ECB Slashes Interest Rates Amid Uncertain Economic Future
ECB Lowers Deposit Facility Rate Amid Inflation Outlook
Euro Zone Bond Yields Drop Amid Anticipation of U.S. Inflation Data and ECB Decision
Interest Rate Cuts: ECB and Fed Adapt to Evolving Economic Landscape