European Markets Waver as Investors Eye Key Earnings

European shares finished Monday's session lower before major corporate earnings reports. The STOXX 600 index declined by 0.6%, with the real estate sector leading losses while energy stocks gained. Attention is on Deutsche Bank, Lloyds, and Barclays, with an important SAP report due later.

European stocks experienced a turbulent session, closing in the red ahead of significant corporate earnings releases. Despite stabilizing oil prices, which lifted the energy sector, the STOXX 600 fell by 0.6% due to a 2% decline in real estate stocks. Key indices in Germany, France, Italy, and Spain also saw declines.

Last week, the STOXX index had risen following an ECB interest rate cut, but investors remain cautious. Lithuanian central bank governor Gediminas Simkus suggested rates might need lowering further if inflation persists. Notably, Deutsche Bank, Lloyds, and Barclays will announce earnings soon, with a focus on loan impairments.

Additionally, SAP's imminent third-quarter earnings report will be crucial for the tech sector following disappointing results from chipmaker ASML. Rising odds of Donald Trump winning the U.S. election are unsettling for European markets, impacting 'Trump trades' such as the U.S. dollar and bitcoin.

(With inputs from agencies.)