European Shares Dip Amid Cautious Stance Before U.S. Fed Meeting

European shares began the week lower as traders remained cautious ahead of the U.S. Federal Reserve's anticipated monetary easing cycle. The STOXX 600 index dropped 0.3%, with most European markets in the red. Investors are also focused on upcoming economic data from Italy and the euro zone.

European shares started the week on a lower note as traders maintained a cautious stance ahead of a closely-watched monetary easing cycle by the U.S. Federal Reserve. Many are expecting a more significant rate reduction.

The pan-European STOXX 600 index slipped 0.3% as of 0710 GMT on Monday, with major European markets experiencing losses and most sub-indexes trading in the red. Investors are keenly awaiting the U.S. central bank's rate decision on Wednesday, where there's currently a 60% chance of a 50-basis-point cut and potential total easing of 120 bps in 2024.

For the day, investors will focus on Italy's consumer price data for August and the euro zone's trade balance for July, to gauge the region's economic health. Meanwhile, France's Rexel surged 12.6% after rejecting a $9.4 billion acquisition offer from QXO. Nestle's shares, however, weighed on the benchmark index with a nearly 1% fall following a downgrade by Morgan Stanley.

(With inputs from agencies.)