Euro Shares Dip Amid Global Economic Shifts

European markets closed lower, impacted by luxury and energy shares following weak China data. French stocks fell after a Moody's downgrade. The euro zone's economic activity saw marginal improvement, though challenges remain. Monetary policy decisions from major central banks are anticipated this week.

On Monday, European stock markets concluded the session lower, primarily dragged down by major luxury and energy stocks in response to underwhelming economic data from China. French equities encountered additional pressure, underperforming due to a surprise downgrade by Moody's.

The STOXX 600 index, representing pan-European stocks, dipped by 0.1%, hovering near a two-week low. Notably, the automotive sector led percentage declines, down 2.8%, as China's retail sales growth showed signs of easing, impacting companies like LVMH.

Further influencing the markets were declining crude oil prices, which pushed the energy sector 1% lower. Conversely, health care recorded a 1.1% gain, mitigating further losses. French CAC 40 diminished by 0.7% post Moody's credit rating downgrade to "Aa3". Meanwhile, political shifts were evident as France appointed a new prime minister and Germany's parliament saw significant developments. Monetary policy decisions are highly anticipated this week across major global central banks.

(With inputs from agencies.)