The pan-European Stoxx 600 index ended 0.2 per cent down after climbing over 3 per cent last week, as investors cheered robust earnings and signals of an end to monetary policy tightening by major central banks
European shares eased on Monday after the benchmark index posted its biggest weekly rise since March, with the real estate sector losing steam, while Ryanair climbed after a forecast for record annual profit.
The pan-European Stoxx 600 index ended 0.2 per cent down after climbing over 3 per cent last week, as investors cheered a string of robust earnings and hints of an end to monetary policy tightening by major central banks.
Fresh data showed the slowdown in euro zone business activity accelerated last month, indicating there is a growing chance of a recession in the European Union.
The euro zone producer prices and retail sales data for September, due throughout the week, will also be evaluated against the backdrop of fading price pressures.
While the markets were revising their estimates for when US rates might start to get cut, economic data in the UK and Europe pointed to an even deeper economic malaise, said Michael Hewson, chief market analyst at CMC Markets.
Real estate stocks shed 2.9 per cent, after emerging as the top sector performer last week.
In the meantime, Ryanair jumped 5.3 per cent after Europe’s biggest airline by passenger numbers forecast a record annual profit and promised a regular dividend payment, lifting the travel and leisure sector index up 0.6 per cent.
Telecom Italia dropped 3.4 per cent, after climbing 5.4 per cent, as the phone company’s board approved the sale of its fixed-line network to US private equity company KKR, sparking dissent from its leading shareholder Vivendi.
Melrose Industries gained 3.5 per cent after the British aerospace supplier said its unit GKN Aerospace Engines signed an agreement with GE Aerospace, expanding a long-term partnership.
Evotec lost 6.3 per cent after RBC downgraded the German biotech company’s stock to “sector perform” from “outperform”.
PostNL shed 12.6 per cent after the Dutch postal company posted Q3 results below expectations.
Call-centre operator Teleperformance cut its full-year revenue growth target for the third time in 2023, sending shares 3.2 per cent down.
Ireland-based Kingspan Group eased 5.3 per cent after reporting sales of 6.14 billion euros in the nine-month period to September 30, compared to 6.25 billion euros in 2022.